8.—6.
INDEX.
PAGE Allowances and allotments to soldier's dependants .. .. .. . • 9 Annual appropriations, estimates, 1941-42 (Consolidated Fund) .. .. .. 6 Bank deposit rates, reduction in .. .. .. .. .. .... 4 Bank overdraft rates, reduction in .. .. .. .. . • • • 4 Bank-taxation .. .. .. .. • • • • • • ■ • .. 7 Budget surplus, 1940-41 .. .. .. .. ■ • • • • • 2,9 Consolidated Fund Estimates, 1941-42 .. .. .. .. . . 6 Debt conversion operations .. .. .. ■ • • • • • • • 11 Dental clinics .. .. .. .. •• •• •• • • . . 6 Domestic allowance for soldiers' wives .. .. .. .. .. .., 9 Estimates, 1941-42 : Revenue and expenditure (Consolidated Fund) .. .. 6 Fruit .. .. .. • • • • • • • • • • .. 3 Highways and roads .. . ■ • • • • • • • ■ • • .. 12 Housing .. .. .. .. • • • • .... .. .. 13 Hydro-electric development .. .. .. .. .. .. .. .. 12 Income-tax amendments .. .. . • • • • • • • ■ • .. 7 Income-tax, 1941-42 : Estimated yield .. .. .. . • . . 6 Industries, secondary .. .. . • • • • • • • • • .. 4 Insurance, war damage .. .. . • • • ,• • • • • • .. 10 Interest, reduction in rates of . . . . .. .. .. . ■ 4 Iron and steel .. .. .. • • • • • • • • • • .. 13 Land-development and afforestation .. .. . . . • .. . . .. 12 Linen-flax .. .. .. •• •• •• •• ..13 Loan programme .. .. • ■ • • • • • • • ■ .. 11 National savings .. ' .. .. . • • ■ ■ • • - • • .. 5, 10 National development loans .. .. .. .. .. .. ..11 National Development Loans Account .. .. . - -. .. 12 National development works .. .. . • • • • ■ • • .. 12 Overseas debt .. .. ■ • • • • • • • • .. 10 Overseas trade . . . - ■ • • ■ ■ • • • • ■ • • .2 Public buildings .. .. .. • • • ■ • • • • • • .. 13 Permanent appropriations, estimates, 1941-42 .. . . . . . • 6 Post Office Savings-bank deposits .. .. .. .. .. .. 1 Price-stabilization .. .. .. • • • • • • • • • - .. 4 Prisoners of war: Dependants' allowances .. .. .. .. . • 9 Produce contracts .. .. . • • • • • • • ■ • • • .. 2 Public Accounts . . .. . • • • • • • • ■ • • • .. 5 Public debt .. . ■ • • • • • • • • ■ • • • .. 10 Public works .. .. .. • • • • • • ■ • • • .. 12 Purchases, United Kingdom Government .. .. .. .. .. 2
8.—6.
PAGE Railway construction and improvements .. .. ~ .. .. .. 12 Repatriation .. .. .. ~ .. ~ .. 10 Revenue : Estimate, 1941-42 .. .. .. .. .. ~ .. 6 Roads and highways .. .. ~ ~ ~ .. , .. 12 Secondary industries .. .. .. .. .. ~ . .. 4 Sheep industry .. .. .. .. .. ~ ~ _ _ .. 3 Social Security Fund: Additional benefits .. .. .. .. .. .. 8 Social Security Fund Estimates, 1941-42 .. .. ~ .. ~ ~ 7 Stocks of materials .. .. .. .. .. .. ~ ~ 4 Subsidies to pastoral industries .. .. .. .. .. .. 3 Summary .. .. .. .. .. .. .. .. ~ .. 13 Supply Council .. .. .. .. .. .. .. ~ .. 4 Surplus, 1940-41 (Consolidated Fund) .. .. .. .. ~ . . 2, 9 Surplus, 1941-42, estimated (Consolidated Fund) .. .. .. , , ~ 6 Taxation estimates, 1941-42 .. .. ~ .. .. .. ~ .. 6 Tobacco .. .. .. .. .. .. .. ~ ~ 4 United Kingdom Government purchases .. .. .. .. ~ .. 2 War damage insurance .. .. .. .. .. .. ~ .. 10 War-costs, overseas, financed by United Kingdom .. .. .. .. 9 War Expenses Account: Estimates .. .. .. .. .. .. .. 8 War loans .. .. .. .. .. .. .. .. .. 9 War veterans' allowance .. .. .. .. .. .. ~ .. 8 Wheat .. .. .. .. .. .. .. .. .. 4
II
B.—o.
1941. NEW ZEA L AND.
FINANCIAL STATEMENT. (In Committee of Supply, 16th July, 1941.) BY THE HON. WALTER NASH, MINISTER OF FINANCE.
• Mr. Chairman,— It is my privilege to lay before honourable members a review of the Dominion's finances and of the Government's proposals for the current financial year. We again meet under the cloud of a war which threatens the freedom and, in fact, the very existence of the British Commonwealth. While we feel confident of ultimate victory, and the signs are not wanting that the tide is slowly turning—none can foretell how soon this will be brought about. In recent months the reality of the struggle in which we are engaged has been brought home to us, not only by the initiative, courage, and enterprise of our military forces in Greece and Crete, by the lists of killed, missing, and prisoners of war, and the wounded who reached our shores a short time ago, but also to an increasing extent by the economic difficulties arising out of the war'. We have to contend with disruption in overseas trade through inability to ship all our produce available for export, together with uncertainty, delays, shortages of supply, and, in some lines, impossibility of obtaining the imports required for our manufacturers, primary producers, and consumers. Within the Dominion the withdrawal of man-power for the armed forces, the various measures being organized to meet possible war emergencies, combined with the use of an increasing proportion of the country's manufacturing capacity for war-supplies, have all added to the difficulties to be overcome in maintaining trade and industry. As stated on previous occasions, economic and financial stability is essential as a basis for maximum production and a sustained war effort and also for the maintenance of the welfare of the people. So far the Government's efforts to maintain economic and financial stability, notwithstanding all the difficulties encountered, have been successful. Production for 1939-40 (the latest available figures) amounted to £143,500,000, an increase of £8,700,000 over the previous period. Notwithstanding the withdrawal of men for the armed forces, the number of factory employees for 1940-41 showed an increase of 3,500, while aggregate salaries and wages paid during this period amounted to £123,500,000, the total being £10,700,000 greater than for the previous period. Unemployment has been reduced to negligible proportions. These results are reflected in the savings-bank figures for the year ended 31st May, 1941. Deposits in the Post-office Savings-bank exceeded the withdrawals by £3,864,000. During the previous year withdrawals exceeded deposits by £1,971,000, so that the improvement for the year is therefore £5,835,000. The amount standing to the credit of depositors at the 31st May, 1941, reached the record total of £63,960,000.
2—B. 6.
B. —6.
Overseas trade.
During the past financial year the whole of the Dominion's exportable produce has been made available to the United Kingdom Government. Largely as a result of increased production and in spite of shipping difficulties, our export values reached the record total of £71,200,000. Imports for the period totalled £47,900,000, resulting in a record excess of exports over imports of £23,300,000. This considerably strengthened our financial position overseas, and made it possible to reduce the Dominion's indebtedness to the United Kingdom Government by £4,000,000 sterling. After this was done overseas assets of the Reserve and trading banks as at 31st March last showed an increase of £6,700,000 over the amount held at the same date in the previous year. The outcome of last year's budget, a surplus of £1,726,000, is further evidence of the fact that our financial position is sound and well under control. This surplus is being transferred to the War Expenses Account to assist in meeting this year's war-costs. As the war effort in New Zealand and in other parts of the British Commonwealth grows in magnitude and intensity, the reactions on trade and industry will inevitably become more widespread, and in one way or another major adjustments will be necessary. It is the policy of the Government to ease the difficulties arising out of the war as much as possible, and to ensure that its burdens and costs are spread as equitably as possible over every section of the community. Particulars of the contracts and other arrangements made with the United Kingdom Government for the disposal of our dairy-produce and meat have recently been announced by my colleague, the Honourable Minister of Marketing. For the current production season now drawing to a close the United Kingdom Government have treated New Zeal arid very fairly in agreeing to purchase, shipped or unshipped, 248,000 tons of meat, 120,000 tons of butter, and all the cheese available. Even so we are faced with storage problems of considerable magnitude, particularly for meat, where the carry-over at the end of September is likely to be as high as 108,000 tons. In anticipation of such a contingency, arrangements have already been made for additional storage facilities throughout the Dominion at an estimated cost of over £500,000. To make more meat available to the United Kingdom Government than can be lifted in available refrigerated ships, the canning plants in. the Dominion are being considerably extended at an estimated cost of about £300,000. To meet the needs of the United Kingdom Government we have undertaken to increase cheese supplies for export to 160,000 tons. This involves a widespread change-over from butter-production to cheese, but with the full co-operation of the industry it is being carried out. In one way and another financial assistance is being given to farmers and to factories concerned to enable necessary plant and equipment to be obtained. Special measures are also being taken to provide housing for additional cheese-factory employees and some compensation to butter and cheese companies for the increased costs arising from the change-over. It is difficult in present circumstances to assess the real cost to the State of the change-over, but the best available estimate is over £500,000. The agreement recently finalized between the United Kingdom and New Zealand Governments for the coming and subsequent seasons' produce constitutes in principle a distinct departure from the previous agreements which have been on a definite quantitative basis. Briefly, this new agreement provides— (1) The United Kingdom Government are to purchase and pay for all the New Zealand produce that can be shipped in any given season : (2) New Zealand primary industries are to make every effort to adapt their production to actual shipping possibilities—that is, by adopting every possible economy such as the deboning, canning, and pressing of meat, and the possibility of processing whey butter, &c. : (3) Alternative markets are to be developed wherever possible : (4) Reserve stocks of storable foodstuffs are to be agreed upon between the two Governments, and to be determined in relation to —- (a) Probable demands during or after the war ; and (b) The importance of the industries to New Zealand :
United Kingdom Government purchases.
Produce contracts.
2
8.—6.
(5) The financial burden of acquiring and holding these reserve stocks, together with contingent charges in relation to storage, insurance, quality deterioration, &c., to be shared equally between the two Governments. The conclusion of the foregoing agreement provides a definite basis on which the future financial obligations of our export trade with the United Kingdom will be determined. Secondly, it creates a broad framework within which our future primary production must be organized and directed. Under these arrangements the financial results of the coming season will obviously be governed to a large extent by the quantity of goods that can be shipped. It is likely that millions of pounds will be tied up in stocks held in store and on these there will be a charge for storage and other services, together with the possibility of loss arising out of the ultimate disposal of the produce. The estimated cost of purchasing whey butter amounts to £450,000 with, at present, no major outlet in sight. Notwithstanding all these liabilities, actual and contingent, the Government have already announced that they are prepared to purchase all butter and cheese available for export at the same guaranteed prices as for the season just closed. Although the dairy industry may be involved in some minor losses arising out of all these difficulties, the decision of the Government will protect them against the major risks and give farmers financial security to carry on their operations with confidence. The proposals for the sheep industry provide that wool will continue to be purchased on behalf of the United Kingdom Government, and no great difficulties are anticipated in dealing with this product. In connection with the allied product of meat, however, we have already had to take special measures to increase storage and to extend the canning-plants to cope with the quantity of meat that cannot be shipped in frozen form. It is recognized, however, that it would be inequitable and contrary to the best interest of the industry and the Dominion to allow losses to remain where they fall according to present war necessities. For the sake of economic stability now, and to preserve intact our productive resources for the future, it is necessary to consider wool and meat together, and work out a scheme under which the State will accept the financial responsibility for the normal exportable surplus as determined in the light of the new agreement with the United Kingdom Government. The schedule of meat prices is at present under consideration and will be discussed with representatives of the industry. Broadly, it can be said that the arrangements made will give the industry a measure of financial security that will enable it to carry on successfully. Apart from the large liabilities and the risks being taken by the State to protect the pastoral industries from the major economic shocks arising from the war, these industries are receiving considerable assistance in keeping their production-costs down. There is provision 011 this year's estimates for subsidies and other payments amounting in the aggregate to approximately £1,400,000, the chief items of which are as follows : — £ Fertilizer subsidy .. .. .. .. 751,000 Railage rebate (lime and fertilizer) .. .. 377,500 Railage rebate on farm produce . . .. .. 65,000 Noxious-weeds destruction .. .. .. 55,000 Compensation for condemned stock .. .. 39,000 Grant: New Zealand School of Agriculture .. 33,000 Rabbit-destruction . . . . .. .. 32,500 Subsidies on account of herd-testing . . . . 15,000 Subsidy on account of manufacture of butter-boxes.. 10,000 Miscellaneous .. .. .. .. . . 20,000 £1,398,000 It is anticipated that no shipping will be available this year for the export of fruit, which in the past has been worth from £500,000 to £750,000 per annum. The fruitgrowers, however, are protected by the arrangements made for the State to purchase the whole of the apple and pear crop for the season. Successful endeavours are being made to absorb the surplus by increased consumption within the Dominion.
Sheep industry*
Subsidies to pastoral industries.
Fruit.
3
8.—6.
During recent years tobacco-growing has become an important industry, and in conformity with the Government's policy of eventually making New Zealand self-supporting in the matter of tobacco-leaf much has been done to encourage the growers concerned. Not only does the quality of the product continue to improve, but the guaranteed basic prices determined by the Government assure the grower a reasonable return for his activities. As regards wheat too, the Government's policy of growing our requirements within the Dominion is producing satisfactory results, and during recent years both the quality and quantity of the product has shown a marked improvement. Growers are guaranteed a minimum price, and the Wheat Research Institute set up by the Government, in co-operation with the industry, has been most successful in the development of better-quality wheats which do not require blending with imported wheats. As a war measure the Wheat Committee, representing the Government, the growers, and the bakers, has arranged for the holding of substantial stocks of wheat in the Dominion. In regard to our secondary industries, the war has brought additional business to many of our factories, and their chief trouble lies in getting essential supplies of materials and plant from abroad and uncertainty as to when goods will come to hand. The Government, and particularly my colleague the Honourable Minister of Supply, are doing everything possible to minimize these difficulties. Arrangements have been made for the accumulation by manufacturers of reasonable stocks of certain basic materials to ensure continuity of operations, and in other cases the State has made bulk purchases for distribution as and when required. The supply organizations in London, America, and Australia are being strengthened, and the volume of representations to assist manufacturers to obtain their requirements is considerable. For the same purpose certificates of essentiality are issued in the case of a few commodities, and this procedure will have to be extended considerably.. The issue of import licenses covering a year and the intention to issue certain licenses for 1942 now should also aSsist manufacturers in overcoming their difficulties. The setting-up of a Supply Council should also indirectly be of much assistance to manufacturers. This body has been established and will be given powers to operate under the general control of the War Cabinet and the Minister of Supply, primarily to overcome difficulties in obtaining supplies for the armed forces. By planning supplies for the forces well ahead of required delivery it is anticipated that the Council will be able to give manufacturers longer-term contracts and continuity of business that should be of considerable value to them in drawing up their production schedules. The Council will also take s£eps to ensure that the necessary materials for defence contracts are available when required, and action along these lines should avoid trouble arising from local stocks of materials being used up on account of rush orders. Another matter which will be of considerable benefit to all producers and, in fact, to all sections of the community, is an arrangement made with the trading banks, for a reduction in overdraft rates from the present minimum of 4.1 per cent, with a maximum of per cent., to a minimum of 4 per cent, and a maximum of 5 per cent. A similar reduction in the rates charged by stock and station agents is at present under consideration by the companies concerned. These reductions will operate as from Ist August. This change will necessitate some reduction in bank-deposit rates, and, concurrently, it has been arranged that the maximum deposit rates that may be paid by building and investment societies, local authorities, and trading companies will also be reduced. These adjustments in deposit rates will be effective to-morrow. In keeping with these reductions the interest rate for deposits in excess of £500 in the Post Office Savings-bank will be reduced to 2 per cent.,, a reduction of i per cent. The present rate of 3 per cent, on deposits up to £500 will remain unchanged. In dealing with reactions from the war, the Government have not overlooked the consumer. With many classes of goods for consumption in short supply owing to difficulties in obtaining imports from abroad, combined with the diversion of a considerable part of our manufacturing capacity to war work, the retail prices of goods are likely to rise unless adequate measures are taken to deal with the situation. Realizing this, the Government took early action in setting up a Price Tribunal,
Tobacco.
Wheat.
Secondary Industries.
Stocks of materials.
Supply Council.
Reduction in bank overdraft and deposit rates.
Price Stabilization.
4
8.—6.
which has clone good work in checking avoidable increases in retail prices. Increases in the cost of articles imported from overseas are beyond our control, but the Government are considering ways and means of stabilizing within reasonable limits the cost of the principal essential commodities that enter into the day-to-day livingcosts of the average citizen. It is a very thorny problem, and different methods will probably have to be adopted for different commodities. Payment of subsidies is one method that has already been used to stabilize the prices of bread (£288,000), sugar (£240,000), and coal (£200,000) making an aggregate annual cost of £728,000. The objective we have in mind is protection of the standard of living of the rank and file of the people by stabilizing retail prices of essential commodities as well as wages. It might appear that the objective could be achieved much more easily by offsetting price-rises with cost-of-living bonuses or wage-increases, but that provides no solution at a time when goods for consumption are in short supply. Short supply of consumption goods is inevitable while the whole British Commonwealth of Nations is making a gigantic war effort involving the loss to industry of millions of men and the call upon industry for enormous quantities of supplies to equip and maintain our armed forces. An illustration of the effect on New Zealand is provided by an analysis of the import figures. During the calendar years 1938 and 1939 the value of consumers' goods imported was £14-8 millions and £10-9 millions respectively, while the value of producers' imported goods remained practically stationary, and when the analysis of 1940 imports becomes available 1 have no doubt the downward trend in consumers' goods will be found to have continued. I would also draw particular attention to the table which appears in the appendix to this statement showing the satisfactory growth during recent years in farm and factory production and showing also that since the outbreak of war the reduction in goods available for consumption is due solely to the reduction in imported goods. The cheerful and resolute manner in which the people of the United Kingdom have accepted drastic curtailment of their consumption of many classes of commodities excites our admiration, and I have no doubt that our people also will willingly do without things that might stand in the way of our part in the war effort. The average citizen, perhaps, does not realize the extent to which he can help the war effort and at the same time assist in maintaining stable prices by curtailing his consumption of goods, and particularly imported goods or goods made from imported materials, that he can reasonably do without. His saving in such goods consumed can be made available for the war effort by paying the money into a National Savings Account or by using it to buy Bonds or other war loan securities. Accumulation of small savings by the mass of the people is of the greatest importance at a time when commodities are in short supply. That the efforts of the Government to keep retail prices steady have been reasonably successful is shown by the fact that since the outbreak of war the retailprice index in New Zealand has shown an increase of 6| per cent, only, compared with 8-|- per cent, in Australia and 27| per cent, in the United Kingdom. PUBLIC ACCOUNTS. Let tis now consider the position of the public accounts for the current financial year. To appreciate the picture fully, three separate budgets must be examined— namely, the Consolidated Fund, wherein are recorded the main taxation receipts and out of which the administration expenses of the Government are met; the Social Security Fund ; and the War Expenses Account. These three budgets, while separated for clarity of accounting, are all interdependent. The War Expenses Account is now the most important of these budgets not only on account of the fact that in this account is reflected our financial contribution to the war, but because the total amounts involved eclipse the other two accounts put together. In logical sequence, however, it is necessary to consider the Consolidated Fund first.
National savings.
Public Accounts.
5
8.—6.
It is not proposed to make any alteration in tlie rates of taxation for this year, and the following estimates have been compiled on this basis :— CONSOLIDATED FUND ESTIMATES, 1941-42. KE VENUE. Taxation— £ f Customs .. .. .. .. 7,700,000 Beer duty .. . . .. . . 1,600,000 Sales tax .. .. .. .. 3,300,000 Highways .. .. .. .. 2,172,000 Stamp duties .. .. .. .. 1,700,000 Land tax . . . . . . . . 950,000 Income-tax (including excess-profits tax) .. 16,100,000 Miscellaneous .. .. .. .. 215,000 33,737,000 Interest .. .. .. .. .. 3,146,000 Other receipts .. .. .. .. 2,413,000 5,559,000 39,296,000 Expenditure. Permanent Appropriations— £ Debt services .. .. 10,955,000 Exchange .. .. 1,600, 000 Transfer of highways revenue 2,172,000 Transfer to War Expenses Account .. .. 1,500,000 Other permanent appropriations .. .. 395,000 16,622,000 Annual votes — Social services . . .. 12,765,000 Other .. .. .. 9,425,000 22,190,000 Supplementary estimates and contingencies .. 400,000 39,212,000 Leaving an estimated surplus of . . £84,000 As compared with last financial year's actual receipts totalling £40,438,000, the estimated revenue for the current year shows a reduction of £1,142,000. A reduction of over £1,000,000 has been allowed for in respect of Customs revenue, in anticipation of reduced imports, and a reduction of £222,000 in highways revenue to allow for reduced petrol-consumption, but a reduction in estimated income-tax revenue will, it is anticipated, be more than offset by revenue from the excessprofits tax, which will be payable this year for the first time. Apart from the transfer of £1,500,000 to War Expenses Account, the estimated expenditure is £37,712,000. This total is approximately £1,000,000 less than last year's actual expenditure. Debt charges and exchange show a comparative decrease of approximately £1,800,000 due to the repayment last year of Treasury notes in London. On the other hand, the votes grouped under the heading of " Social Services " are in the aggregate greater by approximately £1,000,000. This includes £346,000 for the Health Department, mainly on account of increased subsidies to Hospital Boards, £166,000 to provide for the normal increase in the costs of education, and the transfer of an additional £400,000 to the Social Security Fund. In regard to the provision made under vote " Health " for the cost of dental clinics, for some years past it has been the practice to require a contribution of £30 per annum from the local committees for each nurse employed. It lias now been decided to abolish this charge.
Consolidated Fund Estimates 1941—42.
Dental clinics.
6
8.—6.
The other departmental votes in total show a comparative decrease of £260,000. This, however, is after providing for £365,000 by way of additional subsidies for fertilizers, butter-boxes, sugar, wheat, and coal, increases which for the most part arise out of the war. The opportunity is being taken this session to introduce amending legislation to correct certain anomalies that exist in regard to income taxation, the principal of which relates to the basis of assessment of trading banks. Since 1894 banks have been assumed for taxing purposes to earn profits in proportion to their total assets and liabilities, the rate varying from 7s. 6d. per cent, when the system was originally introduced, to 30s. per cent, since 1915. It is obvious that the assessed income computed in this way bears no relationship to the true profits of a bank; in fact, during recent years some banks have paid more in income-taxation than they have actually earned in profits. The difficulty in the past, and, in fact, the justification for imposing the existing system, has been the problem, owing to the banks trading in more than one country, of assessing accurately the profit earned in each, but by collaboration with the Governments concerned that difficulty has been overcome, and accordingly there is no longer any justification for continuing the existing obviously unfair system. The proposed legislation will therefore authorize the taxing of banks on the basis of actual income earned in New Zealand, and make them also liable for full national and social security taxes. SOCIAL SECURITY FUND. As regards the Social Security Fund, allowance has been made in this year's estimates for an increase of £796,000 in monetary benefits and £1,223,000 in respect of medical and hospital benefits. These for the most part arise from normal increases. Thus the increase from £10 to £12 10s. per annum payable in respect of universal superannuation, together with new entrants and late applications, accounts for an additional £250,000 and the increase in the number of age beneficiaries for £300,000. Medical and pharmaceutical benefits account for the greater portion of the increase in the heading of hospital benefits, being reflected in the accounts for the first time this year. The out-patients' service and pharmaceutical benefits are now in full operation, while in anticipation of the general practitioner service being in full operation shortly the sum of £600,000 has been set aside for medical benefits. Total expenditure for the year is estimated as follows : — Monetary benefits— £ £ Age .. .. .. .. 7,410,000 Widows' .. .. .. 855,000 Orphans' .. .. .. 18,000 Family .. .. .. 604,000 Invalids' .. .. .. 1,014,000 Miners' .. .. .. 85,000 Maori War .. . . . . 500 Unemployment .. . . 300,000 Sickness .. . . . . 290,000 Universal superannuation .. 490,000 Emergency .. .. .. 135,000 J1,201,500 Hospital, &c., benefits— Medical .. .. .. 600,000 Pharmaceutical .. .. 350,000 Maternity . . .. .. 550,000 Hospital .. .. .. 1,435,000 Supplementary .. .. 65,000 3,000,000 Administration expenses .. .. • 471,500 £14,673,000
Income-tax amendments.
Social Security Fund Estimates 1941-42.
7
8.—6.
To meet this expenditure the social security charge and registration fee will, it is estimated, provide £10,600,000, and miscellaneous receipts £30,000, while the transfer of £3,600,000 from the Consolidated Fund, together with balances in hand at the beginning of the year, should meet the difference and at the same time leave something to meet possible additional claims during the year. It is the intention to introduce this session several amendments to the Social Security Act. Firstly it is proposed to give further assistance to the family man on the lower scales of income by extending the family benefit to cover the first child. This means an increase of 4s. a week in the family benefit now payable. It is estimated that this increase will cost £230,000 during the first year of operation. The position of age beneficiaries with dependants will also be improved, and to place them on the same basis as other classes of benefits it is proposed to increase the rates payable in respect of the wives and children to 10s. each per week, with a maximum age-benefit in any particular case of £4 10s. weekly. Under the present legislation any person qualified to receive an age-benefit cannot be granted an invalid's benefit, and in consequence the Social Security Commission has no option but to convert an invalid's benefit into an age-benefit when the qualifying age of sixty is reached if the beneficiary is otherwise eligible for a benefit of this nature. This transfer necessitates an adjustment in the rates of benefit, and as the amount at present payable for the wife and children of an invalid is 10s. weekly as compared with ss. a week for age beneficiaries, a reduction has generally been necessary. The proposed amendment will not only correct this anomalous position, but will also allow some additional assistance to be granted to those age beneficiaries who have dependants. The cost of making this alteration is estimated at £74,000 per annum. A further amendment relates to invalids' beneficiaries, and it has been decided to raise the maximum invalids' benefit from £4 to £4 10s. weekly. Irrespective of the number of dependent children, the amount of an invalid benefit under the present provisions cannot exceed £4 a week, and the proposed amendment will bring this class of benefit into line with miners', widows', and age benefits and make the conditions of payment more uniform. The additional expenditure involved in this case is £6,000 per annum. It is also proposed to adjust the War Veterans' allowance by increasing the amount for each child to 10s. instead of the ss. as at present—with a maximum War Veterans' allowance of £4 10s. per weelc. The additional cost for the first year of operation is estimated at £25,000. It will be noted that all these alterations benefit families with children and are proposed in pursuance of the Government's policy of doing everything possible to ensure maintenance of the home and family life and to free mothers from some of the difficulties they have experienced in the past. WAR EXPENSES ACCOUNT. , s We now come to the most important of these budgets—namely, the War Expenses Account. It will readily be appreciated that it is impossible to arrive at estimates of expenditure with any degree of accuracy, as so many unpredictable factors are involved. The war expenditure which came to charge last financial year was in fact less than half the amount estimated, the explanation of the difference in this case being the considerable delay which has been experienced in. the receipt of claims from overseas. For the current financial year provision requires to be made for a total of £69,700,000, including £5,600,000 repayment to the United Kingdom Government. This estimate is arrived at as follows : — Expenditure — £ Navy . . • • •• •• •• 4,200,000 Army .. .. •• 50,000,000 Air .. .. .. •• •• 9,900,000 Debt repayment (United Kingdom Government) 5,600,000 £69,700,000
Additional benefits.
War Expenses Account Estimates, 1941-42.
8
8.—6.
To meet the foregoing and provide a relatively small margin for contingencies it is estimated that the following receipts will be available : — £ Cash balance brought forward from 1940-41 .. 4,428,000 Transfer of 1940 41 Consolidated Fund surplus . . 1,726,000 Transfer from Consolidated Fund, 1941-42 . . 1,500,000 Income-tax .. .. .. .. .. 2,300,000 Estate, succession, and gift duty .. . . 3,046,000 Customs, beer, sales tax, and gold-export duty . . 3,500,000 Postages .. .. .. .. .. 500,000 National security tax .. .. .. . . 10,000,000 Loans : United Kingdom Government (Memorandum of Security) .. .. .. ..31,000,000 Loans (New Zealand) .. .. .. .. 10,000,000 National Savings Accounts and Bonds .. .. 3,000,000 £71,000,000 It would be unwise of course, to give the same details of proposed War Expenses Account expenditure as is the case with other State accounts, but it may be mentioned, in order to give some idea of the magnitude of our commitments, that the Army estimated expenditure of £50,000,000 includes over £28,000,000 for stores and equipment and over £15,000,000 for pay and allowances. Of the war expenditure, it is estimated that a total of £31,000,000 will be expended overseas, mainly on account of the army, and allowance has been made for the financing of such expenditure by. the United Kingdom Government in terms of the memorandum of security arrangement. At the same time the New Zealand. Government have repaid and will continue to repay such advances to the full extent that our sterling funds will permit. Provision has been made in the estimated expenditure for an additional measure of assistance to soldiers' wives with dependent children. Such wives, owing to their domestic responsibilities, are unable to take advantage of the present opportunities for remunerative employment, and accordingly, as from the beginning of September next, it is proposed to pay a domestic allowance of Is. a day to soldiers' wives with one or more dependent children. For a full year, this will involve a charge of approximately £.100,000. With a view to assisting the dependants of members of the armed forces, it has recently been decided that in all cases where members are reported " missing " or " dead " the allotment and allowances and assistance being received from the Soldiers' Financial Assistance Board will be continued for three months after notification to the next-of-kin of the casualty. Thereafter the ordinary war-pension provisions operate where the casualty has been a result of war service. If it is discovered within the period of three months that a member reported " missing " is a prisoner of war, the allotments and allowances are made continuous during the time that he remains a prisoner. In other cases, where the fate of a man reported " missing" remains unknown, the normal practice is for a war pension to be issued at the end of the three months, the pension replacing the active-service payments. Should the discovery be made at a later date, following the issue of a war pension, that the member is a prisoner of war, the procedure is for the allotments and allowances to be restored and necessary adjustments made to cover any difference between these amounts and the pension since the date on which the pension was issued. The dependants of prisoners of war, of course, receive full allotments and allowances during the whole period of internment. Allowance has been made in the estimated receipts for the raising in New Zealand of war loans totalling £10,000,000. A. prospectus to raise this sum will be issued on Ist August for a 2\ per cent, war loan maturing Ist August, 1946, and a 3 per cent, war loan maturing Ist August, 1954, the Government
Domestic allowances for soldiers' wives.
Allowances and allotments to dependants of members of the armed forces reported " missing " or "dead."
War loans.
3—B. 6.
9
8.—6.
having the right, however, on or after Ist August, 1951, to redeem the latter on giving three months' notice. To the extent that the whole of this amount is not required to meet commitments in New Zealand it will be used to meet overseas war costs. To make way for these war loans, the National Development loan has now been withdrawn. The National Savings Accounts and Bonds continue to yield satisfactory results and provision has been made for the raising of an estimated sum of at least £3,000,000 by this means. I would urge all citizens to contribute to war loans, whether in the form of the special war loans, interest-free loans, or National Savings Accounts or Bonds, as apart from the necessity of obtaining funds to meet war costs, a diversion of the spending power of the community to a furtherance of the war effort is an essential measure for economic stability. It is proposed to introduce this session a War Damage Bill providing compensation for loss of property which may be destroyed by enemy action. REPATRIATION. The Government have been considering for some time measures necessary to re-establish in civil life the thousands of men now in the armed forces. Most of the work of repatriation can be carried out by existing Departments and from the administrative point of view co-ordination and direction are the chief problems. It is proposed to bring down a Repatriation Bill this session which will deal with the matter on broad lines and set up a central authority. Land-settlement under the Lands and Survey Department has already been dealt with by the Small Farms Amendment Act, 1940, and its regulations. The State Advances Corporation, which has all the necessary machinery, will be used as the channel for loans for the erection of houses and purchase of farms, furniture, tools-of-trade, &c. These loans will be made on favourable terms and conditions to be determined by the Government. Several free-of-interest loans up to £50 for tools have already been approved, and details of furniture loans are now under consideration. The drafting of schemes for other loans, and for farm and industrial training, has reached an advanced state, and these matters will come up for decision shortly. The administration of other aspects of repatriation has proceeded steadily for some time. Under the War Pensions Extension Act, 1940, sick or disabled men discharged from the forces receive full treatment and adequate pensions, while the State Placement Service acts as an employment and general after-care agency, in addition to interviewing and assisting each man in the first instance. As a back-ground to successful rehabilitation the economic future of the Dominion, particularly in the post-war period, must receive very careful thought. We must endeavour so to direct the industrial make-up of New Zealand that suitable employment can be found not only for returned men, but also for the whole employable population. PUBLIC DEBT. The net decrease in the public debt overseas (apart from war debt) during the past year amounts to £3,903,000 sterling. This reduction has been due to the following net repayments:— Instalments in respect of the £16,000,000 sterling con- £ version loan in accordance with the 1939 agreement 1,891,000 4J per cent. Treasury notes repaid . . . . .. 976,000 Short-term bills .. .. .. .. 1,000,000 Deferred payment stock .. . . . . . . 98,000 3,965,000 Less premiums on converted stocks ~ .. 62,000 £3,903,000
National Savings.
War Damage Insurance.
Repatriation.
Overseas debt.
10
.8.—6.
I would take this opportunity of pointing out that since 1935 the Government have reduced overseas indebtedness, apart from war debt, by a total of no less than £5,716,000 with the consequent saving in overseas debt charges. Up to 31st March last, £5,988,000 had been borrowed from the United Kingdom Government in terms of the Memorandum of Security agreement, under which charges for capital equipment and maintenance of the Second New Zealand Expeditionary Force and the Dominion's share of the cost of the Empire Air Training Scheme are advanced by the United Kingdom Government on an overdraft basis. Of this sum £1,472,000 was repaid prior to 31st March last, leaving a balance owing at that date of £4,516,000. This sum has since been repaid, so that the liability of the* Dominion up to 31st March last in connection with the arrangement has been fully met. Overseas debt, as honourable members will readily appreciate, involves the export of produce from New Zealand to meet the interest and other charges involved, so that the more we reduce such debt the less of our overseas funds do we require to set aside to meet such charges. To ensure the maximum facilities for rehabilitation and post-war expansion it is imperative that we should meet our overseas war commitments to the maximum, and reduce the burden upon our overseas funds after the war. Fresh borrowings within New Zealand during the past year amounted to a net total of £26,012,000, and were derived from the following sources —Public: National development loans, £2,562,000; war loans, £10,091,000 (including £1,208,000 interest-free and £1,321,000 National Savings); other public issues, £869,000; departmental issues, £6,049,000; and £6,441,000 from Treasury bills issued to the Reserve Bank; but it is of interest to note that at the 31st March last, with the exception of Treasury bills issued for housing purposes, the whole of the bills issued to the Reserve Bank had been purchased from funds held in Treasury accounts. The gross increase in the debt domiciled in the Dominion has been applied to the expenditure of £11,886,000 for war purposes, £10,199,000 on hydro-electric development, main highways, and other public works, £5,360,000 on housing, together with £605,000 for redemptions and for costs in connection with loans. Redemptions totalling £4,919,000 were made during the year in New Zealand, but the effect of these was offset to some extent by the issue of securities totalling £2,881,000 in New Zealand in conversion of debt formerly domiciled in London, resulting in a net increase of £'26,012,000. The national development loans to which I have just referred were in the form of both short- and long-dated stock. The short-dated stock was issued at par, bearing interest at 3 per cent, and maturing on 15th July, 1945, while the long-dated was issued at £97 ss. per cent., bears interest at per cent., and is repayable on 15th January, 1959, the Government having the right, however, to redeem the latter stock at par on or after 15th January, 1956. To the 31st March last a total of £2,562,000 had been raised in respect of these loans, while a total of £7,282,000 had been brought to account to the 15th July. In May last holders of 3-per-cent. and 3|-per-cent. stock and debentures falling due for repayment in 1941 and the 3|-per-cent. and 4-per-cent. securities due in 1943, involving in all a total of £21,273,000, were offered conversion into either 3j-per-cent. stock repayable on 15th September, 1957-60, or 3-per-cent. stock repayable 15tli September, 1946-48. Conversion into the 3|-per-cent. 1957-60 was on terms that gave a return to investors of £3 9s. 3d. per cent. The conversion offer was accepted to the extent of nearly £20,000,000, involving a saving to the State in interest charges of approximately £150,000 per annum. This successful conversion loan should remove any necessity for dealing with any further maturing public issues during the war period. The borrowing programme for the current year contemplates raising the sum of £44,000,000 for war purposes; deducting the amount of £31,000,000 to be advanced by the United Kingdom Government in terms of the Memorandum of Security arrangement, leaves a balance of £13,000,000 to be raised in the Dominion. In addition, a net amount of £12,950,000 will be required for national development purposes.
Reduction in overseas debt.
Increase in New Zealand
National development loans.
Conversion operations.
11
8.—6.
NATIONAL DEVELOPMENT. In order that honourable members and the public generally may be in a position to appreciate the financial implications involved in national development activities it is proposed to introduce legislation this year authorizing the setting-up of a National Development Loans Account, in which will be recorded all loan-moneys raised for such purposes and from which the funds required by the various Departments concerned will be drawn. In such an account will be recorded that part of the capital transactions of the State which are expended from loans, and the position will be much easier to follow than the present system of recording the borrowings in separate accounts for each of the various activities concerned. Moreover, the term " Public -works " as popularly known in the past described accurately the purposes of the greater portion of the State's loan expenditure, but is misleading as representing present-day activities where the older type of public works have necessarily declined in importance and given place to developmental expenditure in connection with primary and secondary industries. National development works include the capital works of some eleven different Departments of State —namely, Public Works, Railways, Education, Post and Telegraph, Lands and Survey, Native, Industries and Commerce, Mines, State Forests, Iron and Steel, and Housing. Of these, the Public Works Department has, of course, the largest share, and its total loan allocations are £5,816,000, while the remaining £7,134,000 of the year's loan proposals is distributed among the other ten Departments, making a total loan requirement of £12,950,000. In addition to this sum a further £7,665,000 will be available from the revenues of these developmental activities thus making the national development programme for the year £20,615,000. In accord with Government policy most public works allocations have been reduced this year. Certain classes of developmental works have had to be maintained, however, such as housing, where the shortage is still acute, or increased, as in the case of hydro-electric works, where the industrial development and increased provision of houses has so increased the demand for electricity that the supply in some districts has been fully taken up, necessitating rationing at certain times. Hydro-electricity, moreover, continues to be of ever-increasing importance in the development of both primary and secondary industries, so that if the Dominion is to hold its own in the post-war era and provide suitable and remunerative employment for those demobilized from our forces it is necessary that there should be adequate supplies of essential power. Consequently this year's loan allocation for hydro-electric development has been increased to £1,987,000, as compared with last year's loan expenditure of £1,708,000. The railway construction and improvements loan allocations (£757,000) represent a reduction of £1,173,000 as compared with last year's loan expenditure, but this substantial reduction has been partly offset by the use of a larger amount of revenue-moneys which are available in the depreciation reserves of the Working Railways Account. The loan allocation of £607,000 for the railway-construction vote will be applied to advancing the various works in hand, particularly the Napier-Gisborne and the South Island Main Trunk lines, all of which are nearing completion and which now have strategic as well as developmental values. A loan allocation of only £150,000 will be required for railway improvements and additions, mostly for rolling stock. The balance required for this purpose will be provided from the depreciation reserves just mentioned. Roads and highways activities are to be very substantially reduced this year, in pursuance of a policy of concentrating on and completing essential works only. The roads allocation has been reduced to £350,000, as against last year's expenditure of £599,000, while the loan allocation for main highways is £950,000 as compared with last year's loan outgo of £1,498,000. As mentioned last year, land-development operations are of particular importance in preparing for post-war rehabilitation. The total loan allocations for the purpose for this year are £2,140,000, practically the same amount as was allocated last year, and this money is to be applied to irrigation works (£552,000),
National Development Loans Account.
National Developmentworks. i;i ...
Hydroelectricity.
• Railway Construction and Improvements.
Roads and Highways.
Land Development.
12
8.—6.
small farms development (£388,000), lands for settlement (£450,000), Native land settlement' (£250,000), miscellaneous works on the land (£200,000), and afforestation (£300,000). A further £1,212,000 for land-development operations will be available from revenue receipts and earnings. During the past year the Government's, policy in regard to housing has been vigorously pursued, and it is gratifying to know that during that period an additional 3,966 housing units were completed under the direction of the Housing Department, bringing the total number of new rental units under the control of the State Advances Corporation to 10,425. Further contracts have been let, and the number of units under construction at the end of last year was 2,444. Subject to the necessary material and labour being available, the Housing Construction Department will continue to operate to the fullest possible extent in an effort to provide additional houses which are so urgently required, particularly in the larger centres. Provision for a total expenditure of £4,400,000 has accordingly been made in the current year's estimates, of which £3,790,000 will be financed from loans and the balance from rent receipts. Those desiring to erect houses for themselves have been offered building loans by the State Adyances Corporation on liberal terms, and although there has been some ; easing in the demand there have been granted during the past financial year 907 building loans for a total value of £889,000. The Empire's need for linen-flax supplies the reason for this year's increased loan allocation of £600,000 for this purpose. Under an agreement recently concluded the United Kingdom Government will buy the fibre produced from 25,000 acres during the war period and one year thereafter. A schedule of prices has been agreed upon for the 1941-42 and 1942-43 seasons. The allocation to the Iron and Steel Industry Account has been increased to £350,000, as compared with last year's expenditure of only £6,500, owing to the necessity for some local production of steel. The public buildings loan allocation is £900,000, while that for education buildings is £500,000, and any new works undertaken under both these headings are to be only those of the most urgent nature. Other minor allocations for miscellaneous services such as lighthouse and harbour works, telegraph extension, and plant and material make up a total of £1,229,000, of which £625,000 will be met from loans. This completes a review of the country's finances. The three principal State Budgets—namely, the Consolidated Fund, the War Expenses Account, and the Social Security Fund—having been adequately provided for, no increases in taxation will be necessary this financial year, but it is confidently hoped that citizens will contribute to the maximum extent to the War Loans and the National Savings Bonds and Accounts. SUMMARY. Summarized the financial statement shows: — 1. That in spite of the withdrawal of large numbers of our ablest men for war purposes production during the latest year for which figures are available has increased. 2. That the previous excess of withdrawals from the Post Office Savings-bank Accounts has given place to an excess of deposits amounting to £3,864,000. 3. That the amounts standing to the credit of depositors in the Post Office Savings-bank on 31st May last wag the record sum of £63,960,000. 4. That export values reached the record total of £71,200,000. 5. That the favourable balance of trade available for interest payments, debt reduction, and other charges was the record amount of £23,300,000. 6. That the Public Accounts for the fifth year in succession showed, .a surplus, that, for last year amounting to £1,726,000. 7. That agreement has been reached for the sale of the major portion. of.our primary production to the. United Kingdom Government. 8. That it has also been agreed that any loss on reserve stocks of commodities which are unshipped shall be divided equally between the United Kingdom and the Dominion Governments. . .
Housing.
Linen-flax.
Iron and Steel.
Public Buildings.
13
8.—6.
9. That the Government will have to meet heavy charges in connection with the cost of providing added storage accommodation and for the changeover from butter to cheese. 10. That subsidies payable to primary producers amount to £1,398,000. 11. That the trading banks have agreed to reduce overdraft rates to a minimum of 4 per cent, and a maximum of 5 per cent, with a corresponding reduction in deposit rates. 12. That to help in the stabilization of prices, subsidies are being provided for bread, sugar, and coal and that other commodities will be stabilized in price as soon as the detailed work is completed. 13. That the retail-price index in the Dominion has advanced by 6£ per cent, only as compared with 8£ per cent, in Australia and 27| per cent, in the United Kingdom. 14. That last year's surplus of £1,726,000 is being transferred from the Consolidated Fund to the War Expenses Account and that it is proposed to transfer a further £1,500,000 during the present financial year. 15. That some adjustment of income-tax procedure wili be provided for during the present session of Parliament. 16. That there will be no increase in taxation during the current year. 17. That £600,000 has been set aside to meet the cost of medical benefits when agreement is reached with the doctors. 18. That the estimated expenditure on the Social Security benefits during the year amounts to £14,673,000. 19. That the Social Security benefits will be extended to— (a) Providing family benefit for the first child under the same conditions as now operate for the second and subsequent children: (b) Increasing from ss. to 10s. per week the allowance payable to an age beneficiary in respect of his dependent wife and each of his children: (c) Extending the maximum benefit for invalids with wife and children to £4 10s. per week. (d) Increasing from ss. to 10s. per week the allowance for children of War Veterans. 20. That a soldier's domestic allowance of Is. per day will be paid to the families of all soldiers where there are children. 21. That the estimates of war expenditure during the present year total £69,700,000. 22. That the pay, allowances, and allotments of all soldiers will continue for three months after they are reported killed or missing. 23. That it is proposed to raise war loans in the Dominion for £10,000,000 at 2| per cent, and 3 per cent, interest. 24. That it is anticipated that at least £3,000,000 will be subscribed this year to National Savings Accounts and Bonds. 25. That plans for rehabilitation, repatriation, and post-war expansion are in preparation. 26. That a War Damages Bill to cover loss through enemy action will be introduced during the present session of Parliament. 27. That the overseas debt (apart from.war debt) has been reduced by £3,903,000 during the past year. 28. That the war costs incurred overseas up to 31st March last amounting to £5,988,000 have been repaid to the United Kingdom Government. 29. That internal war borrowing for last financial year amounted to £11,886,000. 30. That the debt domiciled in the Dominion, including the war debt, increased by £26,012,000 during the year. 31. That since 1935 the overseas debt, apart from war debt, has been reduced by £5,716,000. 32. That it is proposed to spend £12,950,000 loan-money on national development during the present financial year. 33. That 3,966 State houses were built in 1940-41, making a total of 10,425 from the inception of the scheme to 31st March last.
14
8.—6.
That, Mr. Chairman, reviews the past year and the estimates for the present year. The objectives of the Government at the present time can be summarized under three main headings:— (а) The paramount necessity of meeting war needs in men, materials, and financial resources. (б) The need to keep the everyday economic life of the community functioning to the fullest extent possible. (c) The need after meeting these commitments, to maintain living standards at the highest level possible, after we have contributed supplies and done all that can be done to help win the present conflict. The war effort is not confined to the military section —civilian workers and women in and out of the home are playing their part not only in maintaining the forces overseas to the fullest extent, but also by producing goods for our own use and for the use of the people of Britain, and by rendering the service essential to achieve our maximum effort. Local manufacturers have achieved splendid results in making good the deficiency in imports and in producing increased quantities of materials essential for our war effort. Our primary producers have contributed in record volume the goods necessary to sustain life in the Dominion, and required for the maintenance of our people in the United Kingdom and the forces in the field. We must continue to work and produce. The war must not be used as an excuse to put the clock back. We have great advantages over people in many other countries in that we have already achieved many of the things which other peoples are now beginning to ask lor. We have gone a long way in building up a better world in which there is more equality of opportunity and fewer extremes of wealth and poverty, while we have freed men from economic uncertainty. Having gained much, we have much more to lose unless we win this war. This financial review is placed before honourable members during one of the most devastating conflicts in human history. It appears that the whole world may be drawn into the vortex of war—a war not of the choosing of the democratic peoples but of the cold and calculating will of a small body of persons who have studied the reactions of normal peoples and used the knowledge so gained together with an application of diabolical genius to crush and subjugate the peoples of the world. Czechoslovakia, Austria, Poland, Denmark, Norway, Luxemburg, The Netherlands, Belgium, France, Yugoslavia, and Greece have all in turn been subjugated and occupied. The force of the Axis Powers has now been turned against Russia, with whom they were in complete agreement, and no one knows how soon the cables may announce an extension of the area of conflict. All that we can do is to resolve that come what may, we will hold on to the freedom which has been built up through the ages, and all that we have shall be used with no thought of surrender. With the United Kingdom, Canada, Australia, South Africa, India, and the colonies we are one —strong to resist and determined to overcome. Aided by the magnificent material resources of the United States of America, mobilized under the leadership o! its grecit President, Roosevelt, we shall ultimately see the conflict ended in the triumph of the freedom-loving powers. Then we will turn our hearts and minds to building up a State worthy of the sons of freedom who have devoted their lives to its maintenance and expansion.
15
8.—6.
TABLES TO ACCOMPANY THE FOREGOING STATEMENT.
Page Table No. 1. —Abstract of Receipts and Expenditure op the Financial Year ended 31st March, 1941. See Parliamentary Paper 8.-l [Part I]. Table No. 2.—The Public Debt on 31st March, 1941. See Parliamentary Paper 8.-l [Part lII]. Table No. 3.—Revenue for the Year ended 31st March, 1941, compared with the Year ended 31st March, 1940 .. .. .. •• •• •• •• •• ii Table No. 4. —Comparative Statement op the Estimated and Actual Revenue op the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1941 .. .. .. .. .. .. .. • • • • .. iii Table No. 5. Estimated Revenue for 1941-42, compared with the Actual Revenue for 1940-41 .. iv Table No. 6.—Stamp and Death. Duty Revenue for the Year ended 31st March, 1941, compared with the Year ended 31st March, 1940 .. .. .. ;. .. iv Table No. 7. —Statement of the Customs Duties collected for 1940-41, compared with 1939-40 .. v Table No. 8. —Statement of the Actual Net Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1941, compared with the Year ended 31st March, 1940 .. .. .. .. .. ▼ Table No. 9.— Comparative Statement of the Appropriated and Actual Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1941 .. .. .. .. .. •• •• vii Table No. 10.—Estimated Net Expenditure for 1941-42, compared with the Actual Net Expenditure for 1940-41 .. .. .. .• •. •• •• • • i* Table No. 11. —Public Works Fund—Statement showing Net Expenditure under Appropriations for the Year ended 31st March, 1941, compared with the Year ended 31st March, 1940 x Table No. 12. —Statement showino the Total Ways and Means of the Public Works Fund, General Purposes Account, and the Total Net Expenditure to 31st March, 1941 .. xi Table No. 13. Statement showing the Amount charged to " Unauthorized "in each Financial Year from Ist April, 1931, to 31st March, 1941 .. .. .. .. .. xii Table No. 14. —Statement showing the available Financial Resources of the various Accounts on the 31st March, 1941, as compared with the 31st M arch, 1940 .. .. .. xiii Tible No. 15. — Statement of Amounts paid on account of Pensions and Social Security Benefits for the Financial Years ended 31st March, from 1936 to 1941 .. .. .. xiii Table No 16. Education Expenditure—Total Expenditure on Education out of Public Funds since 1913-14 .. .. .. •• -• •• •• .. xiv Table No. 17. Statement showing Maturity Dates and Domicile of Debt outstanding as at 31st March, 1941 .. .. .. .. • • • • • • .. xv Table No. 18. -Statement showing Values of Imports and Exports of the Dominion in each Financial Year ended 31st March, from 1932 to 1941 .. .. .. .. xvi Table No. 19. —Table showing Improvement in Economic Conditions .. ... ... .. xvi Table No. 20.—Index Numbers of Value and Volume of Production and of Goods available for Consumption within New Zealand .. .. .. .. .. .. xvii Copy of Prospectus of 1953 War Loan .. .. .. . . .. .. xviii Copy of Prospectus of National Development Loans .. .. .. .. xix Copy of Prospectus of 1941 Conversion Loans •• .» •• •• xx
i—B. 6.
8.—6.
Table No. 3. Revenue for the Year ended 31st March, 1941, compared with the Year ended 31st March, 1940.
II
Year ended j Year ended 31st March, ! 31st March, Inorease. Decrease. 1941. 1940. Taxation — ! £ £ £ £ Customs .. ■■ •• 8,777,757 9,946,858 .. 1,169,101 Beer duty .. .. .. •• 1,602,030 1,378,999 223,031 Sales tax 3,502,533 3,510,130 .. 7,597 Film-hire tax .. 94,974 93,117 1,857 Gold-export duty .. .. .. 108,915 116,889 .. 7,974 Highways .. .. . • ... 2,393,756 2,997,441 .. 603,685 Stamp and death duties .. .. .. 1,697,779 3,469,013 .. 1,771,234 Land-tax .. .. .. •• 959,418 1,019,084 .. 59,666 Income-tax 15,720,490 10,271,352 5,449,138 Miscellaneous .. .. .. 16,080 7,716 8,364 Total—Taxation ... .. 34,873,732 32,810,599 5,682,390 3,619,257 Interest — On capital liability— Working railways .. .. .. 1,694,643 1,189,031 505,612 Postal and telegraph ... .. .. 665,000 639,000 26,000 On Public Debt Redemption Fund .. .. 396,520 445,557 .. 49,037 On other public moneys .. .. .. 528,683 635,158 .. 106,475 Total—Interest .. .. •.. 3,284,846 2,908,746 531,612 155,512 Other receipts — Registration and other fees .. .. 319,662 308,283 11,379 Territorial revenue .. .. .. 434,511 395,489 39,022 External affairs .. .. .. .. 176,344 159,203 17,141 Justice .. .. .. .. .. 160,367 172,765 .. 12,398 Marine .. .. .. .. .. 151,506 159,456 .. 7,950 Native .. .. .. .. .. 4,738 5,658 .. 920 Printing and Stationery .. .. ,. 291,905 300,827 .. 8,922 Profits of Trading Institutions .. .. 419,853 420,143 .. 290 Stamp duties .. .. .. .. 64,145 63,188 957 Tourist and Health Resorts .. 112,566 114,963 .. 2,397 Miscellaneous .. .. .. .. 131,308 129,972 1,336 Recoveries on account of expenditure of j 12,117 18,564 .. 6,447 previous years Recoveries on account of unauthorized expendi- | 327 6,303 .. 5,976 ture of previous years Total—Other receipts .. .. 2,279,349 2,254,814 69,835 45,300 6,283,837 3,820,069 3,820,069 Totals .. .. .. .. | 40,437,927 37,974,159 2,463,768
B. 6,
Table No. 4. Comparative Statement of the Estimated and Actual Revenue of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1941.
III
Difference. Estimate for Actual for 1940-41. 1940-41. Increase. Decrease. Taxation — £ £ £ £ Customs .. .. .. .. 7,500,000 8,777,757 1,277,757 Beer duty .. .. .. .. 1,380,000 1,602,030 222,030 Sales tax .. .. .. .. 3,000,000 3,502,533 502,533 Film-hire tax .. .. .. .. 90,000 94,974 4,974 Gold-export duty ... .. .. 125,000 108,915 .. 16,085 Highways .. .. .. .. 2,600,000 2,393,756 .. 206,244 Stamp and death duties .. .. .. 1,650 000 1,697,779 47,779 Land-tax .. .. .. .. 1,000,000 959,418 .. 40,582 Income-tax .. .. .. .. 13,550,000 15,720,490 2,170,490 Miscellaneous .. .. .. .. 10,000 16,080 6,080 Total—Taxation .. .. .. 30,905,000 34,873,732 4,231,643 262,911 Interest— On capital liability — Working railways .. .. .. 1,200,000 1,694,643 494,64-3 Postal and telegraph . .. .. 650,000 665,000 15,000 On Public Debt Redemption Fund .. .. 450,000 396,520 .. 53,480 On other public moneys .. .. .. 500,000 528,683 28,683 Total—Interest .. .. .. 2,800,000 3,284,846 538,326 53,480 Other receipts— Registration and other fees .. .. 300,000 319,662 19,662 Territorial revenue .. .. .. 400,000 434,511 34,511 External Affairs .. .. .. .. 160,000 176,344 16,344 Justice .. .. .. .. .. 184,000 160,367 .. 23,633 Marine .. .. .. .. .. 160,000 151,506 .. 8,494 Native .. .. .. .. .. 6,000 4,738 .. ,262 Printing and Stationery .. .. .. 350,000 291,905 .. 58,095 Profits of Trading Institutions .. .. 495,000 419,853 .. 75,147 Stamp duties .. .. .. .. 66,000 64,145 .. 1,855 Tourist and Health Resorts .. .. 115,000 112,566 .. 2,434 Miscellaneous .. 1,125,000 131,308 .. 993,692 Recoveries on account of expenditure of 14,000 12,117 .. 1,883 previous years Recoveries on account of unauthorized ex- .. 327 327 penditure of previous years Total—Other receipts .. .. 3,375,000 2,279,349 70,844 1,166,495 4,840,813 1,482,886 1,482,886 Total revenue .. .. .. 37,080,000 40,437,927 3,357,927
8.—6.
Table No. 5. Estimated Revenue of the Consolidated Fund (Ordinary Revenue Account) for the Year ending 31st March, 1942, compared with the Actual Revenue received for the Year ended 31st March, 1941.
Table No. 6. Stamp and Death Duty Revenue for the Year ended 31st March, 1941, compared with the Year ended 31st March, 1940.
IV
I Estimate Actual Difference. ! for for 1941-42. 1940-41. Iucreas0i Uecrease Taxation — £ £ £ £ Customs .. .. .. .. .. .. 7,700,000 8,777,757 .. 1,077,757 Beer duty .. .. .. .. •• 1,000,000 1,002,030 .. 2,030 Sales tax.. .. .. .. .. .. 3,300,000 3,502,533 .. 202,533 Film-hire tax .. .. .. .. .. 95,000 94,974 26 Gold-export duty .. .. .. .. 110,000 108,915 1,085 Highways .. .. .. .. .. 2,172,000 2,393,756 .. 221,756 Stamp duties 1,700,000 1,697,779 2,221 Land-tax 950,000 959,418 .. 9,418 Income-tax and Excess Profits Tax .. .. .. 16,100,000 15,720,490 379,510 Miscellaneous .. .. .. .. 10,000 16,080 ... 6,080 Total—Taxation .. .. 33,737,000 34,873,732 382,842 1,519,574 Interest — On capital liability— Working Railways .. .. .. .. 1,500,000 1,694,643 .. 194,643 Postal and Telegraph .. .. .. .. 670,000 665,000 5,000 On the Public Debt Redemption Fund .. .. 396,000 396,520 .. 520 On other public moneys .. .. .. .. 580,000 528,683 51,317 Total —Interest .. .. 3,146,000 3,284,846 56,317 195,163 Other receipts—■ Registration and other fees .. .. .. .. 300,000 319,662 .. 19,662 Territorial revenue .. .. .. .. 400,000 434,511 .. 34,511 External Affairs .. .. .. .. 170,000 176,344 .. 6,344 Justice .. .. .. .. .. .. 160,000 160,367 .. 367 Marine .. .. •• .. .. •• 145,000 151,506 .. 6,506 Native .. .. .. .. .. .. 5,000 4,738 262 Printing and Stationery .. .. .. .. 325,000 291,905 33,095 Profits of Trading Institutions .. .. .. 600,000 419,853 180,147 Stamp duties .. .. .. .. .. 63,000 64,145 .. 1,145 Tourist and Health Resorts .. .. .. 110,000 112,566 .. 2,566 Miscellaneous .. .. .. .. .. 115,000 131,308 .. 16,308 Recoveries on account of expenditure of previous years 20,000 12,117 7,883 Recoveries on account of unauthorized expenditure .. .. 327 .. 327 Total—Other receipts .. .. 2,413,000 2,279,349 221,387 87,736 660,546 1,802,473 660,546 Totals .. .. .. .. .. 39,296,000 40,437,927 .. 1,141,927
Year Ended 31st Maroh, Item. I Increase. Decrease. 1941. 1940. I . I £ £ £ £ Adhesive stamps .. .. 55,225 216,771 .. 161,546 Duty on instruments.. .. 390,611 367,890 22,721 Estate and succession duty .. 3,032,795* l,543,954f 1,488,841 Gift duty .. .. .. 194,995* 216,361 j .. 21,366 Impressed stamps, and duty on 233,548 229,739 3,809 cheques Company licenses .. .. 91,501 90,729 772 Sharebrokers'licenses .. 1,511 1,770 .. 259 Totalizator revenue .. .. 785,517 787,418 .. j 1,901 Amusements-tax .. .. 92,700 95,644 .. 2,944 Lottery duty .. .. 24,075 24,083 .. 8 Overseas-passenger duty .. 14,951 25,709 .. 10,758 Miscellaneous .. .. 8,140 3,394 4.746 1,520,889 198,782 198,782 Totals .. 4,925,569 3,603,462 1,322,107 * Paid to War Expenses Account. t £1>443,705 paid to Consolidated Fund and £100,249 to War Expenses Account. t £182,161 paid to Consolidated Fund and £34,200 to War Expenses Account.
8.—6.
Table No. 7. Statement showing Customs Duties collected for Year ended 31st March, 1941, compared with the Year ended 31st March, 1940.
Table No. 8. Statement of the Actual Net Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1941, compared with the Financial Year ended 31st March, 1940.
V
1940-41. 1939-40. Increase. Decrease. £ £ £ £ Tobacco, cigars, and cigarettes .. .. 2,111,751 2,265,222 .. 153,471 Spirits, wine, and beer .. .. .. 825,041 1,008,348 .. 183,307 Motor-vehicles and parts* .. .. .. 130,915 315,405 .. 184,490 Motor-spirit* .. .. .. .. 2,692,903 2,684,954 7,949 Tea .. .. .. .. .. 129,862 145,887 .. 16,025 Sugar .. .. .. .. .. 716,893 690,803 26,090 Other goods .. .. .. .. 1,412,789 2,032,126 .. 619,337 Primage duty .. .. .. .. 401,727 300,140 101,587 Surtax .. .. .. .. .. 355,876 503,973 .. 148,097 War-taxes .. .. .. .. 650,019 295,666 354,353 489,979 1,304,727 489,979 Totals .. .. .. .. 9,427,776 10,242,524 .. 814,748 * Excluding tire-tax and petrol-tax earmarked to Main Highways.
Year ended Tear ended 81st March, 31st March, Increase. Decrease 1941. 1940. Permanent Appropriations :—• Under special Acts of Legislature— £ £ £ £ Civil List .. .. .. .. .. 27,005 27,033 .. 28 Debt Services — Interest .. .. ... .. .. 8,152,586 7,982,505 170,081 Amortization of debtSinking fund .. .. .. .. .. 10,859 10,859 Repayment of Public Debt Act, 1925 .. 2,074,062 1,892,378 181,684 Transfers to Loans Redemption Account .. 1,696,715 252,331 1,444,384 Payments on guaranteed loans .. .. 595 Or. 2,513 3,108 Administration and management .. .. 62,258 330,068 .. 267,810 Total —Debt Services .. .. .. 11,997,075 10,465,628 1,799,257 267,810 Other Services — Other grants and subsidies .. .. .. 253,659 253,031 628 Salaries and honoraria .. .. .. 71,413 71,594 .. 181 Highways— Transfers to Main Highways Account .. 2,229,351 2,790,098 .. 560,747 Paid to boroughs .. .. .. .. 145,357 182,170 .. 36,813 Expenses of collecting, &c. .. .. 25,879 27,541 .. 1,662 Advances .. .. .. .. .. 109,605 3,145 106,460 Other special Acts — Exchange on remittances of public moneys to 2,403,361 1,704,716 698,645 or from countries overseas Miscellaneous .. .. .. .. 43,996 29,821 14,175 Transfer to War Expenses Account .. .. .. 2,287,826 .. 2,287,826 Tota,l —Other Services .. .. 5,282,621 7,349,942 819,908 2,887,229 Total—Permanent Appropriations .. 17,306,701 17,842,603 2,619,165 3,155,067
.8.—6.
Table No. 8-continued. Statement of the Actual Net Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1941, compared with the Financial Year ended 31st March, 1940—continued.
VI
Year ended Year ended . 31st March, 31st March, Increase. Decrease. 1941. 1940. Annual Appropriations:— £ £ £ £ Vote, — Legislative ... .. .. .. •• lll,08o 105,481 5,604 Prime Minister's Department .. .. .. 24,527 26,245 .. 1,718 Finance — Treasury .. .. •• •• •• 59,778 49,211 10,567 Customs 153,578 158,390 .. 4,812 Land and Income Tax .. .. •• 185,449 155,259 30,190 Stamp Duties 102,427 97,531 4,896 Audit .. .. •• •• •• 39,900 33,812 6,088 Total—Finance 541,132 494,203 51,741 4,812 General Administration — Public Service Commissioner's Office .. .. 16,104 13,454 2,650 Internal Affairs 546,219 518,400 27,819 External Affairs .. .. .. •• 209,732 208,213 1,519 Printing and Stationery .. .. •• 293,184 250,818 42,366 Marine . •• •• 168,785 179,426 .. 10,641 Labour .. •• •• 2,517,326 2,881,908 .. 364,582 Native .. .. .. •• 412,904 535,745 .. 122,841 Valuation .. .. .. •• 37,560 48,503 .. 10,943 Electoral 8,133 10,452 .. 2,319 Census and Statistics.. .. .. .. 33,023 33,850 .. 827 National Service .. .. . • 100,911 .. 100,911 Total—General Administration .. 4,343,881 4,680,769 175,265 512,153 Law and Order— Justice and Prisons 271,641 279,463 .. 7,822 Crown Law Office .. .. .. •• 8,348 8,401 .. 53 Police .. .. 649,715 627,502 22,213 Total —Law and Order .. .. 929,704 915,366 22,213 7,875 Defence— Navv .. •• 169,139 .. 169,139 Armv • • •• 541,969 .. 541,969 Air .. .. •• •• •• 215,504 .. 215,504 Total—Defence .. .. ■■ •• 926,612 .. _ 926,612 Maintenance of Public Works and Services .. 575,697 1,090,598 .. 514,901 Development of Primary and Secondary Industries— Lands and Survey 368,177 306,181 61,996 Agriculture .. .. • • • • • ■ 1,011,984 970,338 641,646 .. Industries and Commerce, Tourist and Publicity.. 688,842 350,883 337,959 Scientific and Industrial Research .. .. 164,074 157,049 7,025 Min«« .. .. .. .. .. 233,063 74,485 158,578 Transport .. •. - ■ • • • • 67,362 83,063 .. 15,701 Total — Development of Primary and 3,133,502 1,941,999 1,207,204 15,701 Secondary Industries Social Services — Health .. •• 1,423,609 1,519,139 .. 95,530 Mental Hospitals 425,671 303,753 121,918 Education 4,606,347 4,471,809 134,538 Pensions .. .. .. •• 1,957,217 2,016,811 .. 59,594 Social Security .. .. •• •• 3,200,000 1,000,000 2,200,000 National Provident and Friendly Societies .. 103,513 119,618 .. 16,105 Total—Social Services .. .. 11,716,357 9,431,130 2,456,456 171,229 Unauthorized Expenditure— Services not provided for .. .. .. ■■ 28,917 199,814 .. 170,897 Total—Annual Appropriations .. 21,404,802 19,812,217 3,918,483 2,325,898 6,537,648 5,480,965 5,480,965 Total Expenditure .. .. .. 38,711,503 37,654,820 1,056,683
B.—o.
Table No. 9. NET EXPENDITURE. Comparative Statement of the Appropriated and Actual Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1941.
VII
Net Actual Net | Difference. Appropriations, Expenditure, | r-1940-41. 1940-41. j Increa9e Dccrea9e> Permanent Appropriations :— £ £ £ £ Under Special Acts of the Legislature,— Civil List .. .. .. .. .. 30,200 27,005 .. 3,195 Debt services— Interest .. .. .. .. .. 8,519,607 8,152,586 .. 367,021 Ammortization of Debt— Sinking Fund .. .. .. .. 10,859 10,859 Repayment of Public Debt Act, 1925 .. 2,077,225 2,074,062 .. 3,163 Securities redeemed .. .. .. .. ... Payments on Guaranteed Loans .. .. 3,066 595 .. 2,471 Transfers to Loans Redemption Account .. .. 1,696,715 1,696,715 Administration and Management .. .. 59,850 62,258 2,408 Total—Debt services .. .. 10,670,607 11,997,075 1,699,123 372,655 Other servicesHighways .. .. .. .. .. 2,583,000 2,400,587 .. 182,413 Exchange .. .. .. .. .. 1,500,000 2,403,361 903,361 Other Special Acts .. .. .. .. 349,965 478,673 128,708 Total—Other services .. .. 4,432,965 5,282,621 1,032,069 182,413 Total—Permanent Appropriations 15,133,772 17,306,701 2,731,192 558,263 Annual Appropriations :— Vote, — Legislative .. .. .. .. .. 109,000 111,085 2,085 Prime Minister's Department .. .. .. 24,000 24,527 527 Finance— Treasury .. .. .. .. .. 60,350 59,778 .. 572 Customs .. .. .. .. .. 169,197 153,578 .. 15,619 Land and Income Tax .. .. .. 170,000 185,449 15,449 Stamp Duties .. .. .. .. 104,500 102,427 .. 2,073 Audit .. .. .. .. .. 40,000 39,900 .. 100 Total—Finance .. .. .. 544,047 541,132 15,449 18,364 General Administration— Public Service Commissioner's Office .. .. 16,000 16,104 104 Internal Affairs .. .. .. .. 508,624 546,219 37,595 External Affairs .. .. .. .. 215,943 209,732 .. .6,211 Printing and Stationery .. .. .. 300,000 293,184 .. 6,816 Marine .. .. .. .. 172,885 168,785 .. 4,100 Labour .. .. .. .. .. 2,616,282 2,517,326 .. 98,956 Native .. .. .. .. .. 490,000 412,904 .. 77,096 Valuation.. .. .. .. .. 50,000 37,560 .. 12,440 Electoral .. .. .. .. .. 7,100 8,133 1,033 Census and Statistics .. .. .. 36,000 33,023 .. 2,977 National Service .. .. .. .. 101,440 100,911 .. 529 Total —General Administration .. 4,514,274 4,343,881 38,732 209,125 Law and Order — Justice and Prisons .. .. .. .. 289,560 271,641 .. 17,919 Crown Law Office .. .. .. .. 8,500 8,348 .. 152 Police .. .. .. .. .. 649,478 649,715 237 Total—Law and Order .. .. 947,538 929,704 237 18,071 Maintenance of Public Works and Services .. 650,000 575,697 .. 74,303 Development of Primary and Secondary Industries— Lands and Survey .. .. .. .. 400,000 368,177 .. 31,823 Agriculture .. .. .. .. 1,657,174 1,611,984 .. 45,190 Industries and Commerce, Tourist and Publicity 524,115 688,842 164,727 Scientific and Industrial Research .. .. 165,153 164,074 .. 1,079 Mines .. .. .. .. .. 255,100 233,063 .. 22^037 Transport .. .. .. .. .. 73,000 67,362 .. 5,638 Total — Development of Primary and 3,074,542 3,133,502 164,727 105,767 Secondary Industries 1
8.—6.
Table No. 9—continued. NET EXPENDITURE —continued. Comparative Statement of the Appropriated and Actual Expenditure of the Consolidated Fund (Ordinary Revenue Account) for the Financial Year ended 31st March, 1941—ctd.
VIII
Net Actual Net Difference. Appropriations, Expenditure, 1940-41. 1940-41. Increase. Decrease. • I Annual Appropriations—continued. £ £ £ £ V ote —continued. Social Services— Health .. .. .. .. .. 1,502,110 1,423,609 .. 78,501 Mental Hospitals .. .. .. .. 442,000 425,671 .. 16,329 Education .. .. .. • •• 4,630,310 4,606,347 .. 23,963 Pensions .. .. .. .. .. 1,950,000 1,957,217 7,217 Social Security .. .. •• •• 3,200,000 3,200,000 National Provident and Friendly Societies .. 109,000 103,513 .. 5,487 Total —Social Services .. .. 11,833,420 11,716,357 7,217 124,280 Unauthorized Expenditure,— Services not provided for .. .. .. .. 28,917 28,917 Total—Annual Appropriations .. 21,696,821 21,404,802 257,891 549,910 2,989,083 1,108,173 1,108,173 Total Expenditure .. .. 36,830,593 38,711,503 1,880,910
8.—6.
Table No. 10. Estimated Net Expenditure of the Ordinary Revenue Account for the Year ending 31st March, 1942, compared with Actual Net Expenditure for the Year ended 31st March, 1941.
ii—B. 6.
IX
Estimate Actual Difference. for for ~" 1941-42. 1940-41. Increase. Decrease. Permanent Appropriations,— £ £ £ £ Civil List .. .. .. .. .. .. 31,331 27,003 4,326 Debt services— Interest .. .. .. .. .. .. 8,540,645 8,152,586 388,059 Sinking Fund .. .. .. .. .. 10,859 10,859 Repayment of Public Debt .. .. .. .. 2,260,020 2,074,062 185,958 Transfers to Loans Redemption Account .. .. 10,000 1,696,715 .. 1,686,715 Administration and Management .. .. .. 134,695 62,258 72,437 Payments of Guaranteed Loans, Redemptions, and Cr. 1,500 595 .. 2,095 Transfers —— Total—Debt Services .. .. .. 10,954,719 11,997,075 646,454 1,688,810 Under Special Acts of the Legislature— Highways .. .. .. .. .. 2,172,000 2,400,587 .. 228,587 Exchange .. .. .. .. .. 1,600,000 2,403,361 .. 803,361 Other Special Acts.. .. .. .. .. 1,863,630 478,673 1,384,957 Total—Other Services .. .. .. 5,635,630 5,282,621 1,384,957 1,031,948 Total —Permanent appropriations .. 16,621,680 17,306,701 2,035,737 2,720,758 Annual Appropriations,— Legislative .. .. .. .. .. .. 115,000 111,085 3,915 Prime Minister's Department .. • .. .. .. 22,220 24,527 .. 2,307 Finance — Treasury.. .. .. .. .. .. 53,490 59,778 .. 6,288 Customs .. .. .. .. .. .. 159,246 153,578 5,668 Land and Income Tax .. .. .. .. 199,600 185,449 14,151 Stamp Duties .. .. .. .. .. 102,200 102,427 .. 227 Audit .. .. .. .. .. .. 43,100 39,900 3,200 557,636 541,132 23,019 6,515 General Administration — Public Service Commissioner's Office .. .. .. 16,500 16,104 396 Internal Affairs .. .. .. .. .. 496,500 546,219 .. 49,719 External Affairs .. .. .. .. .. 247,700 209,732 37,968 Printing and Stationery .. .. .. .. 357,530 293,184 64,346 Marine .. .. .. .. .. .. 156,890 168,785 .. 11,895 Labour .. .. .. .. .. .. 1,603,000 2,517,326 .. 914,326 Native .. .. .. .. .. .. 428,300 412,904 15,396 Valuation.. .. .. .. .. .. 40,000 37,560 2,440 Electoral.. .. .. .. .. .. 112,500 8,133 104,367 Census and Statistics .. .. .. .. 33,390 33,023 367 National Service .. .. .. 102,500 100,911 .1,589 3,594,810 4,343,881 226,869 975,940 Law and order— Justice and Prisons .. .. .. .. 278,005 271,641 6,364 Crown Law .. .. .. .. .. 8,680 8,348 332 Police .. .. .. ... .. .. 667,900 649,715 18,185 954,585 929,704 24,881 Maintenance of Public Works and Service .. .. 600,000 575,697 24,303 Development of Primary and Secondary Industries— Lands and Survey .. .. .. .. .. 404,800 368,177 36,623 Agriculture .. .. .. .. 1,806,800 1,611,984 194,816 Industries and Commerce, Tourist and Publicity .. 801,400 688,842 112,558 Scientific and Industrial Research .. .. .. 183,200 164,074 19,126 Mines .. .. .. .. .. .. 298,475 233,063 65,412 Transport . . .. .■ . . .. 86,400 67,362 19,038 3,581,075 3,133,502 447,573 Social ServicesHealth .. .. .. .. .. 1,769,895 1,423,609 346,286 Mental Hospitals . . . . .. .. 448,700 425,671 23,029 Education .. .. .. .. 4,772,200 4,606,347 165,853 Pensions .. .. .. .. .. .. 2,070,947 1,957,217 113,730 Social Security .. . ■ • • ■ • ■ ■ 3,600,000 3,200,000 400,000 .. National Provident and Friendly Societies .. .. 103,200 103,513 .. 313 12,764,942 11,716,357 1,048,898 313 Services not provided for .. .. •• .. 28,917 .. 28,917 Total —Annual appropriations .. .. 22,190,268 21,404,802 1,799,458 1,013,992 3,835,195 3,734,750 3,734,750 Totals .. .. .. 38,811,948 38,711,503 100,445 ■■
8.—6.
Table No. 11. PUBLIC WORKS FUND. Statement showing the Net Expenditure under Appropriations for the Year ended 31st March, 1941, compared with the Year ended 31st March, 1940.
X
Year ended Year ended ! T r.„ te ' 31st March, 1941. 31st March, 1940. Increase. Decrease. £ £ £ £ Public Works Departmental .. 48,730 147,401 .. 98,731 Railway-construction .. .. .. 857,932 1,178,776 .. 320,844 Railways Improvement and Additions to 1,072,160 2,986,640 .. 1,914,480 Open Linos Public Buildings— General .. .. .. .. 337,769 269,228 68,541 Courthouses .. .. .. 13,154 11,436 1,718 Education Buildings .. .. .. 541,406 844,126 .. 302,720 Prison Buildings and Works .. .. 2,533 4,348 .. 1,815 Police-stations .. .. .. 24,343 60,664 .. 36,321 Postal and Telegraph .. .. 352,562 362,730 .. 10,168 Mental Hospital Buildings .. .. 126,644 175,552 .. 48,908 Health and Hospital Institutions .. 44,020 67,136 .. 23,116 Lighthouses and Harbour-works .. 34,354 22,519 11,835 Development of Tourist Resorts .. 21,575 24,892 .. 3,317 Roads, &c. .. .. .. .. 599,013 1,124,590 .. 525,577 Telegraph Extension .. .. .. 256,053 416,779 .. 160,726 Lands, Miscellaneous .. .. .. 242,958 172,525 70,433 Irrigation, Water-supply, and Drainage .. 611,038 416,437 194,601 Swamp Land Drainage .. .. 3,947 2,696 1,251 Settlement of Unemployed Workers .. .. 446,698 .. 446,698 Small Farms Development .. .. 315,429 .. 315,429 Native Land Settlement .. .. 238,444 357,819 .. 119,375 Linen Flax Development .. .. 245,977 .. 245,977 Totals, annual appropriations 5,990,041 9,093,052 909,785 4,012,796 Unauthorized—• Services not provided for .. .. 1,388 4,976 .. 3,588 Totals .. .. .. 5,991,429 9,098,028 909,785 4,016,384 909,785 3,106,599 I
8.—6.
Table No. 12. Statement showing the Total Ways and Means of the Public Works Fund, General Purposes Account, and the Total Net Expenditure to the 31st March, 1941.
XI
WAYS AND MEANS. Loans :— £ 8. d. £ s. d. Immigration and Public Works Loan, 1870 .. ■. * ■ 4,000,000 0 0 Immigration and Publio Works Loan, 1873 .. .. 2,000,000 0 0 Immigration and Public Works Loan, 1874 .. .. .. 4,000,000 0 0 General Purposes Loan Act, 1873 .. .. .. •• 750,000 0 0 New Zealand Loan Aot, 1876 .. .. .. •• 750,000 0 0 New Zealand Loan Aot, 1877 .. .. .. •• 2,200,000 0 0 New Zealand Loan Aot, 1879 .. .. .. .. 5,000,000 0 0 New Zealand Loan Aot, 1882 .. .. .. •• 3,000,000 0 0 New Zealand Colonial Inscribed Stock Loan Act, 1882 .. .. 250,000 0 0 North Island Main Trunk Railway Loan Act, 1882 .. .. 1,000,000 0 0 New Zealand Loan Act, 1864 .. .. •• 1,500,000 0 0 New Zealand Loan Aot, 1886 .. .. .. •• 1,325,000 0 0 District Railways Purchasing Acts, 1885 and 1886 .. .. 479,487 7 11 New Zealand Loan Aot, 1888 .. .. .. •• 1,000,000 0 0 Native Land Purchase Act,"1892 .. .. .. •• 149,700 0 0 Lands Improvement and Native Lands Acquisition Act, 1894 .. 500,000 0 0 Aid to Public Works and Land Settlement Act, 1896 .. .. 1,000,000 0 0 Aid to Public Works and Land Settlement Amendment Act, 1897.. 250,000 0 0 Aid to Public Works and Land Settlement Amendment Act, 1898.. 500,000 0 0 Aid to Public Works and Land Settlement Act, 1899 .. .. 1,000,000 0 0 Aid to Public Works and Land Settlement Act, 1900 .. .. 1,011,600 0 0 Aid to Public Works and Land Settlement Act, 1901 .. 1,250,000 0 0 Aid to Public Works and Land Settlement Act, 1902 .. .. 1,750,000 0 0 Aid to Public Works and Land Settlement Act, 1903 .. .. 997,690 0 0 Aid to Public Works and Land Settlement Act, 1904 .. .. 750,000 0 0 Aid to Public Works and Laud Settlement Act, 1905 .. .. 1,000,000 0 0 Aid to Publio Works and Land Settlement Act, 1906 .. .. 989,700 0 0 Aid to Public Works and Land Settlement Act, 1907 .. .. 1,000,000 0 0 Aid to Publio Works and Land Settlement Act, 1908 .. .. 1,250,000 0 0 Aid to Public Works and Land Settlement Act, 1909 .. .. 1,000,000 0 0 Aid to Public Works and Land Settlement Act, 1910 .. .. 1,750,000 0 0 Aid to Public Works and Land Settlement Act, 1911 .. .. 1,500,000 0 0 Aid to Public Works and Land Settlement Act, 1912 .. .. 1,748,900 0 0 Aid to Public Works and Land Settlement Act, 1913 .. .. 1,750,000 0 0 Aid to Public Works and Land Settlement Act, 1914 .. .. 3,000,000 0 0 Aid to Public Works aud Land Settlement Act, 1921 .. .. 5,061,533 0 3 Aid to Publio Works and Land Settlement Act, 1922 .. .. 4,408,860 12 3 Finance Act, 1909 .. .. .. •• •• -• 1,250,000 0 0 Finance Act, 1915, and New Zealand Loans Act, 1915 .. .. 2,000,000 0 0 Finance Aot, 1916 .. .. .. •• •• 1,000,000 0 0 Finance Aot, 1917 .. .. .. .. •• 850,000 0 0 Finance Act, 1918 (No. 2) .. .. •• 2,500,000 0 0 Finance Act, 1919, Section 5 .. •• 750,000 0 0 Finance Act, 1920, Section 15 . -• 2,500,000 0 0 Finance Act, 1921, Section 10 .. .. ■■ •• 2,673,111 10 11 Finance Aot, 1923, Section 2 .. .. 4,306,608 17 6 Finance Act, 1924, Section 2 .. .. .. •• 2,126,013 12 6 Finanoe Act, 1925, Seotiou 2 .. .. .. •• •• 4,151,450 10 2 Finance Act, 1926, Section 2 .. .. .. •• 5,220,134 10 7 Finance Act, 1927 (No. 2), Section 2 .. .. 4,319,594 10 3 Finauce Act, 1928, Section 2 .. .. •• •• •• 3,185,132 14 8 Finance Act, 1929, Section 2 .. .. .. •• •• 4,097,119 4 6 Finance Act, 1930 (No. 2), Section 2 .. .. .. .. 5,000,000 0 0 Finance Act, 1931 (No. 4), Section 2 .. .. •• •• 3,000,000 0 0 Finance Act (No. 3), 1934, Section 2 .. .. .. •• 4,000,000 0 0 Finance Aot (No. 2), 1936, Section 2 .. .. .. •• 6,000,000 0 0 Finance Act, 1937, Section 11 • • • • • • • • 6,000,000 0 0 Finance Aot, 1938, Section 2 .. .. .. •• 8,000,000 0 0 Finance Act, 1939, Section 2 .. •• •• 8,927,310 0 0 Stook issued for Expenses of Conversion, 1930-31 .. •• 360,835 18 0 Post and Telegraph Aot, 1908 .. •• •• 200,000 0 0 Midland Railway Petitions Settlement Acts, 1902 and 1903 .. 150,000 0 0 Paeroa-Waihi Railways Aot, 1903 .. .. •• •• 75,000 0 0 Waikaka Branch Railway Act, 1905 .. .. •• •• 50,000 0 0 Appropriation Act, 1912 .. .. • • • • • • 15,000 0 0 Irrigation and Water-supply Act, 1912 ■. .. • ■ 100,000 0 0 Balances transferred from Separate Accounts, 1931-32- - £ s. d. Waihou and Ohinemuri Rivers Improvement 5,518 10 10 Aocount Education Loans Account .. .. .. 12,867 3 9 Railways Improvement Authorization Aot 1914 420,783 17 4 Aooount Native Land Settlement Account .. .. 3,445 4 10 £ s. d. Hauraki Plains Settlement Aocount 44 10 4 Rangitaiki Land Drainage Account 10,797 5 0 Swamp Land Drainage Account .. 9,008 19 1 19,850 14 5 Utilized lor redemptions .. 19,850 14 5 -1 442,614 16 9 Carried forward . •• •• 144,122,397 6 3
8.—6.
Table No. 12 —continued. Statement showing the Total Ways and Means of the Public Works Fund, General Purposes Account, and the Total Net Expenditure to the 31st March, 1941—continued.
Table No. 13. Statement showing the Amount charged to "Unauthorized" in each Financial Year from 1st April, 1931, to 31st March, 1941.
XII
WAYS AND MEANS—continued. £ a. d. £ s. d. Brought forward .. .. .. 144,122,397 6 3 Receipts in Aid :— Amount transferred from Consolidated Fund .. .. .. 14,555,000 0 0 Contributions of Canterbury Province for Railways .. ■ ■ 56,000 0 0 Proceeds of Railway Material handed over to Cook County Counoil | 4,963 7 4 Stamp Duties to 31st Deoember, 1876 .. .. .. 264,657 16 4 Transfer from Confiscated Lands liabilities Account .. .. 19,963 1 3 Receipts under Section 16 of the Reserves and other Lands Disposal 21,890 4 5 and Publio Bodies Empowering Act, 1912 Special Receipts under Section 9 of the Railways Construction Act, 60,616 3 0 1878 Special Receipts under the Ellesmere Lake Lands Acts, 1888 and 70,838 6 11 1893 Special Receipts under the Railways Authorization and Manage- 2,257 1 9 ment Act, 1891 Special B,eceipta under the North Island Main Trunk Railway Loan 114,550 19 6 Application Act, 1886 Sinking Funds released .. .. -• •• 506,819 19 3 Finance Act, 1932, Section 7 (4) — Sale of land under Hauraki Plains Act, 1926 .. .. •• 78,848 16 9 Small-farms Development .. .. .. ■ • • • 378,600 10 2 Receipts under Section 12 of Native Land Amendment Act, 1932.. 40,092 12 2 Agriculture (Emergency Powers) Act, 1934, Section 26 .. .. 6,199 18 9 Finance Act, 1932 (No. 2), Section 6— Transfer from Land for Settlements Account.. .. 4,237 12 0 Finance Act, 1932 (No. 2), Section 16 — Transfer from Land for Settlements Account.. .. .. 43 6 8 Transfer from State Forests Account .. .. .. 1,4 17 1 Receipts under the Native Housing Act, 1935 .. .. 19,900 14 1 Finance Act, 1932, Section 55 .. •• •• •• 243,125 0 0 16,448,620 7 5 £160,571,017 13 8 NET EXPENDITURE. Expenditure on— Immigration .. .. •. •• •• 3,312,484 14 4 Public Works, Departmental .. .. .. •• - ■ 3,798,799 9 0 Railways, including Surveys of New Linos and Payment to Midland 69,905,883 0 11 Railway Bondholders Roads .. 28,039,871 10 7 Land-purchases .. .. •• •• •• 2,148,248 8 2 Small-farms Development .. .. •• .. 2,429,825 1 5 Development of Mining .. .. •• 879,714 10 11 Telegraph Extension .. .. .. •• •• •• 13,549,466 0 9 Public Buildings .. .. •• •• 19,236,350 13 6 Lighthouses, Harbour-works, and Harbour-defences .. .. 1,425,344 17 7 Contingent Defence .. .. .. 1,389,448 17 9 Rates on Native Lands .. .. •• • 68,671 16 10 Thermal Springs .. .. •• •• •• 14,599 13 2 Development of Tourist Resorts .. •• 828,103 2 1 Lands Improvement .. .. .. •• ■■ •• 1,648,209 6 8 Swamp Land Drainage .. .. .. • • . • 109,404 4 3 Plant, Material, and Services .. .. .. .. ■■ 134,825 11 3 Charges and Expenses of raising Loans .. .. .. .. 3,998,827 15 4 Coal-mines .. •• •• •• •• •• 10,835 8 0 Interest and Sinking Fund .. .. 218,500 0 0 Irrigation and Water-supply .. .. •• •• 2,577,785 17 4 Motor Transport Service .. .. .. •• •• 33,635 5 3 Transfer to Main Highways Account, Construction Fund .. .. 1,226,000 0 0 Native Land Settlement .. .. .. •• 1,772,810 16 10 Dairy Industry Loans .. .. .. .. .. .. 46,124 13 0 Linen-flax Development .. .. •. • ■ . • 245,976 17 9 159,049,747 12 8 Balance on 31st March, 1941— * Cash in the Publio Account . ■ • •. • ■ 557,425 1 0 Investments .. .. •• • 963,845 0 0 1,521,270 1 0 £160,571,017 13 8
I I Consolidated Fund.— Ordinary Revenue Account. ! Financial \ Othek Public Womb I Total Ykar. I Accounts. Fund. vi^dfor^ 0 " Excess of Votes - j Total. £ s. d. £ 8. d. £ a. d. £ a. d. £ s. d. £ s. d. 1931-1932.. 18,098 6 0 19,182 17 10 37,881 3 10 21,577 6 4 1,376 10 3 60,835 0 5 1932-1933.. 45,724 18 4 16,005 18 3 61,730 16 7 57,667 1 10 40,160 8 3 159,558 6 8 1933-1934.. 3,643 17 10 8,326 0 3 11,969 18 1 8,288 2 5 1 12 5 20,259 12 11 1934-1935.. 17,313 13 4 69,966 7 1 87,280 0 5 47,973 11 7 21,384 12 0 156,638 4 0 1935-1936.. 13,346 5 0 126,457 14 3 139,803 19 3 108,641 5 3 13 18 5 248,459 2 11 1936-1937.. 36,790 15 3 113,473 1 4 150,263 16 7 81,170 9 10 2,002 19 6 233,437 5 11 1937-1938.. 88,65110 2 138,382 16 1 227,034 6 3 6,100 2 8 14,120 10 9 247,254 19 8 1938-1939.. 374,579 19 8 415,576 1 5 790,156 1 1 143,575 7 1 165,95112 8 1,099,683 0 10 1939-1940.. 199,814 2 7 478,918 11 0 678,732 13 7 45,816 17 1 31,413 13 10 755,963 4 6 1940-1941.. 29,047 7 11 228,973 11 8 258,020 19 7 135,180 7 0 32,643 16 7 425,845 3 2
8.—6.
Table No. 14. Statement showing the available Financial Resources of the various Accounts on the 31st March, 1941, as compared with the 31st March, 1940.
Table No. 15. PENSIONS AND BENEFITS. Statement of Amounts paid on Account of Pensions and Social Security Benefits for the Financial Years ended 31st March from 1936 to 1941.
XIII
1941. 1940. Account. Balance Liabilities Ba >™ L!ab 0 » ltiea Sthorityto Slat March, 31st March, *££ SlstBtorch, 31st March, Consolidated Fund— £ £ £ £ £ £ Ordinary Revenue .. .. 3,779,150 1,043,589 .. 2,052,526 1,072,608 Public Works Fund— General Purposes.. .. .. 1,521,270 627,790 10,112,690 1,288,991 634,572 12,592,255 Electric Supply .. .. .. 186,232 274,474 1,615,692 50,887 151,701 1,323,351 Electric Supply Sinking Fund .. 39,323 .. .. 12,648 Bank of New Zealand Shares .. 1,859,375 .. .. 1,859,375 Iron and Steel Industry .. .. .. 956 4,996,000 .. 424 5,000,000' Land for Settlements .. .. 1,758,600 34,777 6,278,000 973,163 2,906 6,278,000 Loans Redemption .. .. .. 36,514 .. .. 339,313 Main Highways .. .. .. 15,931 194,792 .. 80,173 402,346 1,792,111 Public Debt Repayment .. .. 913,258 .. 2,794,136 17,423 Reserve Fund .. .. .. 1,342,957 .. .. 1,305,117 Samoan Loan Suspense .. .. .. .. 4,800 .. .. 4,800 Social Security Fund .. .. 1,867,440 360,182 .. 523,901 293,941 State Coal-mines .. .. .. 12,582 47,116 .. 18,919 22,261 35,000 State Forests .. .. .. 40,012 25,050 1,290,225 42,920 23,141 585,225 War Expenses .. .. .. 4,428,548 2,276,785 18,871,462 953,380 507,552 6,713,946 Working Railways .. .. .. 1,331,338 404,763 .. 994,555 431,447 Housing .. .. .. .. .. 68,150 5,200,000 .. 5,654 2,950,000 Additional Unexhausted Authorities for raising Loans. Government Accident Insurance Act, 1908 .. .. 23,000 .. .. 23,000 State Fire Insurance Act, 1908 .. . . .. 98,000 .. .. 98,000 Totals .. .. .. 19,132,530 5,369,424 51,284,005 10,513,291 3,548,553 37,395,688
Year ended 31st March, I 1936. 1937. | 1938. 1939. I 1940. 1941. - . Pensions— £ £ £ £ £ £ Blind .. .. .. 22,991 6,181 Civil Service Act, 1908 .. 4,676 4,106 3,632 3,256 3,130 2,647 Defence Act, 1909 .. 2,127 2,067 1,991 1,905 1,993 1,713 Epidemic .. .. 907 253 14 Judicature Act, 1908 .. 3,222 2,753 2,111 1,852 2,291 2,750 Police .. .. .. 1,575 1,849 1,820 1,783 1,720 1,666 War .. .. .. 1,349,447 1,483,345 1,597,524 1,616,248 1,673,730 1,663,600 War Veterans' Allowances 16,544 110,667 161,267 158,584 203,439 211,325 Miscellaneous 1938/39 Pen- .. .. .. .. 38,947 sion Instalments Sundry .. .. 8,256 9,290 8,623 8,755 8,095 6,307 *Benefits — Old-age .. .. 1,718,601 2,413,103 3,235,057 3,577,129 6,517,899 7.101,346 Widows' .. .. 311,864 412,280 471,287 487,216 785,952 836,368 Orphans' .. .. .. .. .. .. 14,880 17,713 Family Allowance .. 149,043 130,730 106,402 84,436 252,562 411,811 Invalidity .. .. .. 278,579 632,829 750,748 942,196 999,648 Miners' .. .. 67,834- 83,253 88,167 87,094 92,653 88,656 Maori War .. .. 2,577 1,972 1,806 1,338 1,103 744 Unemployment.. .. .. .. .. .. 434,497 299,161 Sickneas .. .. .. .. .. .. 208,790 279,581 Emergency .. .. .. .. .. .. 86,711 130,096 Universal Superannuation .. .. .. .. .. 240,336 Totals .. .. 3,659,664 4,940,428 6,312,530 6,780,344 11,270,588 12,295,468 * Paid from fciocial 8eourity Fund as from 1st April, 1939.
8.—6.
Table No. 16. EDUCATION EXPENDITURE. Total Expenditure on Education out of Public Funds, including Primary, Secondary, Higher Education, Technical and Special Schools, and Child Welfare, 1913-14 to 1940-41.
Additional amounts are available from revenue from reserves vested in postprimary schools and University colleges as follows : — £ Post-primary schools . . .. • ■ 29,308 University colleges.. .. 16,422 £45,730 The following amounts were paid out of the Government Fire Insurance Fund for rebuilding school buildings destroyed by fire :—
Year ended Amount. Year ended Amount. 31st March, £ 31st March, £ 1916-17 .. 2,127 1929-30 .. 6,357 1917-18 .. 2,658 1930-31 .. 6,671 1919-20 .. 15,682 1931-32 . 7,768 1920-21 .. 16,162 1932-33 .. 6,424 1921-22 .. 27,103 1933-34 .. 3,846 1922-23 .. 8,542 1934-35 .. 8,541 1923-24 .. 12,490 1935-36 .. 5,149 1924-25 .. 32,829 1936-37 .. 6,831 1925-26 .. 4,938 1937-38 .. 7,952 1926-27 .. 10,337 1938-39 .. 13,266 1927-28 .. 12,474 1939-40 .. 10,931 1928-29 .. 12,197 1940-41 .. 19,956
XIV
Loan-money: Erection Consolidated Fund. j of School Buildings and Residences. p er Head Vote, Subsidies . ■ l at , lonal kduoation Revenue T ).? , Public Education PopulaSpecial Endow- (excluding frQm Xeaohers Works Loana t f on> Acts. ment Superannua- Kegerves . Super- l]luld . Account. Revenue. tion annuafcjon Subsidies). Fund. £ £ £ £ £ £ £ £ £ s. d. 1913-14 .. 27,742 50,681 1,131,756 71,803 17,000 121,954 .. 1,420,941 1 5 3 1914-15 .. 26,128 55,139 1,207,983 70,802 17,000 122,940 .. 1,499,992 1 6 2 1915-16 .. 46,874 64,858 1,329,166 84,390 17,000 97,972 1,640,260 1 8 6 1916-17 .. 58,408 60,180 1,406,264 90,535 17,000 70,367 .. 1,702,754 1 9 8 1917-18 .. 59,362 70.345 1,511,256 90,518 17,000 63,082 .. 1,811,563 1 11 5 1918-19 .. 57,716 76,177 1,602,995 92,095 43,000 115,656 .. 1,987,639 I 14 1 1919-20 .. 79,747 78,988 2,031,825 99,352 43,000 195,500 .. 2,528,412 2 1 10 1920-21 .. 101,972 70,313 2,460,116 100,758 4-3,000 244,722 214,571 3,235,452 2 11 8 1921-22 . 96,217 71,737 2,580,562 105,448 43,000 2,469 563,411 3,462,844 2 13 10 1922-23 . 90,393 66,610 2,514,991 112,378* 68,000 .. 361,976 3,214,348 2 9 0 1923-24 .. 96,506 77,788 2,604,508 116,808*68,000 .. 295,681 3,259,291 2 8 11 1924-25 .. 128,844 86,746 2,752,271 118,973*68.000 .. 462,212 3,617,046 2 13 2 1925-26 .. 111,389 87,512 2,854,719 119,978* 70,952 .. 564,946 3,809,496 2 14 9 1926-27 .. 115,499 88,545 2,954,597 119,073* 71,452 .. 550,954 3,900,120 2 14 11 1927-28 .. 127,289 90,518 2,974,615 123,247* 71,497 .. 369,134 3,756,300 2 12 1 1928-29 .. 137,233 94,934 3,067,296 127,444*71,749 .. 375,423 3,874,079 2 13 1 1929-30 .. 140,561 87,420 3,193,828 129,531*146,781 .. 428,764 4,126,885 2 15 10 1930-31 . 125,331 94,506 3,230,200 106,405* 46,907 .. 491,974 4,095,323 2 14 8 1931-32 .. 82,163 79,375 2,851,922 88,207*46,935 259,148 .. 3,407,750 2 4 11 1932-33 .. .. 51,938 2,574,929 85,716* 47,043 52,623 .. 2,812,249 1 16 9 1933-34 .. 53,221 2,480,055 107,129 57,294 51,435 .. 2,749,134 1 15 8 1934-35 .. 87,207 2,550,100 128,738 165,306 51,289 .. 2,982,640 1 18 5 1935-36 .. 95,968 2,747,582 118,883 170,026 121,424 .. 3,253,883 2 1 4j; 1936-37 .. 95,526 3,348,4491 88,713 169,362 268,884 .. 3,970,934 2 10 3 1937-38 . .. 99,540 3,629,9061159,955 177,178 546,434 .. 4,613,013 2 17 1 1938-39 .. 101,721 4,052,582§ 107,559 167,064 660,480 .. 5,089,406 3 6 9 1939-40 .. .. •• 4,424,148f 133,554 155,842 843,064 .. 5,556,608 3 8 0 1940-41 .. .. .. 4,559,075 77,181 162,572 541,136 .5,339,964 3 5 3 * Net revenue after deducting expenses and cost of collection. f Includes charges to " Unauthorized." J On census results. §£3,149 Miscellaneous Revenue not taken into account.
B. —6.
Table No. 17. PUBLIC DEBT. Maturity and Domicile of Debt outstanding, 31st March, 1941.
XV
Date of Maturity. Due in ~ Total Debt „ T New Zealand. (Nominal 1st April, 31et March, London - Australia. Amount). Public. Departmental. £ £ £ £ £ Overdue .. .. .. 4,220 .. 4,220 Treasury bills .. .. .. 17,256,800 13,476,500 30,733,300 Memoranda of .. 4,515,662 .. .. .. 4,515,662 Security 1925| .. 1946 .. 2,090,909* .. .. .. 2,090,909 1938$ .. 1942 .. .. .. 2,805,315 195,700 3,001,015 1939$ .. 1942 ,. .. .. 4,526,145 87,360 4,613,505 1939$ .. 1943 .. .. .. 13,658,860 100 13,658,960 194-0 .. 1945 .. 12,588,700 .. .. .. 12,588,700 1941 .. 1942 .. .. 17,300 37,000 .. 54,300 194-2$ .. 1946 .. .. .. 9,208,995 631,860 9,840,855 1942$ .. 1963 .. 10,505,989 .. 378,639 .. 10,884,628 1943 .. 1944 .. 7,339,656 .. .. .. 7,339,656 1944 .. 1945 .. 7,780,408 .. 246,415 12,610 8,039,433 1945 .. 1946 .. 22,543,590 .. 943,466 .. 23,487,056 1946 .. 1947 .. .. .. 425,149 1,232,743 1,657,892 1946$ .. 1950 .. .. .. 8,302,425 660,780 8,963,205 1947 .. 1948 .. 11,341,609 83,300 2,476,650 1,501,600 15,403,159 1947$ .. 1958 .. 19,225,465 .. .. .. 19,225,465 1948 .. 1949 .. ... .. 4,963,190 44,000 5,007,190 1948$ .. 1954 .. 5,791,201 .. .. .. 5,791,201 1949 .. 1950 .. 7,500,000 .. .. .. 7,500,000 1949$ .. 1953 .. .. .. 1.2,484,105 .. 12,484,105 1950 .. 1951 .. 1,250,000 j 779,000 250,000 .. 2,279,000 1952 .. 1956 .. 12,000.0001-! .. 7,974,005$ 1,524,770$ 21,4-98,775 1952$ .. 1957 .. .. .. 6,800,225 2,315,765 9,115,990 1953 .. 1954 .. .. .. 9.282,337 270 9,282,607 1954 .. 1959 .. .. .. 5,198,960 339,150 5,538,110 1955 .. '1956 .. .. .. 750 461,700 462,450 1955$ .. 1960 .. .. .. 1,541,700 155,080 1,696,780 1955$ .. 1961 .. 4,780,301 .. .. 4,780,301 1956 .. 1957 12,900 .. j 2,710 2,622,395 2,638,005 1956$ .. 1972 .. 5,000,000 .. .. .. 5,000,000 1957 .. 1958 .. .. .. 10.550 20,889,317 20,899,867 1958 .. 1959 .. .. .. 4,500 24,503,894 24,508,394 1959 .. 1960 .. .. .. .. 9,309.250 9,309,250 1960 1961 .. .. .. 264,950 .. 264,950 Interest-free§ .. 5,000 .. 1,163,481 .. 1,168,481 || 1946 .. 577,446|| .. .. .. 577,446 || 1958 .. 23,522,753|| .. .. .. 23,522,753 Totals .. .. 158,371,589 879,600 110,211,542 79,964,844 349,427,575 * Advances by Imperial Government for State Advances purposes. f Government has option to redeem at par on or after the earlier date on giving notioe in the London Gazette. J Government has option to rjdeom on or after the oat'lier date on giving three months' notice in the New Zealand Gazette. § Interest - free loans are for various periods, the bulk being for the duration of the war and six months thereafter. || Imperial Government advances funded in terms of section 8, Finance Aot, 1922, Payments at present suspended.
8.—6.
No. 18. EXTERNAL TRADE. Statement showing the Recorded, Sterling, and New Zealand Currency Values of Imports and Exports of the Dominion in each Financial Year ended 31st March from 1932 to 1941 (excluding Specie).
Table No. 19. IMPROVEMENT IN ECONOMIC CONDITIONS. Table of Miscellaneous Statistical Information (on a March Year Basis) showing the Most Recent Figures compared with 1934-35, 1935-36, and the Lowest Point in the Depression.
XVI
Exports. Imports. Excess of Exports. Year ended 31st March, New Zealand j Sterling New Zealand Sterling New Zealand] Sterling Currency. Equivalent. Currency. Equivalent. Currency. Equivalent. £ (000) £ (000) £ (000) £ (000) £ (000) £ (000) 1932 .. .. .. 33,943 30,857 24,761 22,510 9,182 8,347 1933 .. .. .. 37,510 32,677 25,059 22,049 12,451 10,628 1934 .. .. .. 46,043 36,834 26,136 20,908 19,907 15,926 1935 .. .. .. 44,918 35,985 32,568 26,082. 12,350 9,903 1936 .. .. .. 49,676 39,900 37,440 30,072 12,236 9,828 1937 .. .. .. 60,234 48,381 47,621 38,250 12,613 10,131 1938 .. .. .. 65,008 52,215 58,065 46,638 6,943 5,577 1939 .. .. .. 57,867 46,415 54,408 43,657 3,459 2,758 1940 .. .. .. 59,684 47,747 45,572 36,457 14,112 11,290 1941 .. .. .. 71,179 56,943 47,918 38,334 23,261 18,609
Lowest: Figure. 1934-35. 1935-36. Latest Mgure. Unit. " Year ended a™™™* Year ended Year ended * i. Year onded » , 31st March, Amount - gist March, Amount - 3i s t, March, Amount - 3i s t March, Amount - Value of total production .. .. £(m.) 1932* 83-3 1935* 97-0 1936* 114-2 1940* 143-5 Value of farm production .. .. ,, 1932* 49-2 1935* 59-2 1936* 72-5 1940* 84-4 Value of factory productiont .. „ 1933* 17-7 1935* 20-7 1936* 23-2 1940* 33-5 Aggregate private income .. .. „ 1933 91-7 1935 106-4 1936 124-3 1940 200-3 Salaries and wages payments .. „ 1933 58-9 1935 65-7 1936 72-5 1941 123-5 Gross farming income .. .. „ 1933* 38-1 1935* 46-1 1936* 57-8 1940* 73-6 Exports (excluding specie) .. .. „ 1932 33-9 1935 44-9 1936 49-7 1941 71-2 Imports (excluding specie) .. .. „ 1932 24-8 1935 32-6 1936 37-4 1941 47 9 Bank deposits (excluding Government) „ 1932 51-0 1935 62-3 1936 62-1 1941 78-1 Bank debits (excluding Government) ,, 1933 539-7 1935 660-3 1936 732-8 1941 1,058-4 Net bank-note circulation .. .. „ 1932 5-8 1935 6-3 1936 6-6 1941 15-5 Building permits issued in larger "centres — Total value .. .. .. „ 1933 2-1 1935 3-1 1936 5-0 1941 9-4 Dwellings .. .. .. Number 1933 997 1935 2,173 1936 3,181 1941 5,999 Mortgages registered .. .. £(m.) 1934 7-8 1935 11-8 1936 16-2 1941 16-3 Mortgages discharged .. .. „ 1933 8-1 1935 13-7 1936 17-6 1941 15-9 Land transfers .. .. .. „ 1934 9-6 1935 12-2 1936 15-6 1941 25-7 Totalisator investments .. .. „ 1933 3-3 1935 3-9 1936 4-5 1941 8-3 Radio-receiving licenses .. .. (000) .. .. 1935J 152-8 1936J 192-3 1941J 355-4 Post Office Savings-bank— New deposits .. .. .. £(m.) 1933 16-9 1935 24-2 1936 25-6 1941 28-6 Amount to credit of depositors .. „ 1933 42-0 1935 49-4 1936 52-9 1941 63-0 Sales-tax collected .. .. ,, 1934 1-8 1935 2-2 1936 2-5 1941 3-5 Electric-power production (units) .. Million .. .. 1935 916-3 1936 1,031-7 1940 1,631-3 Railways: Net ton-miles run .. „ 1933 363-4 1935 419-7 1936 443-6 1941 659-7 Shipping: Manifest tonnage .. „ 1934 5-7 1935 6-3 1936 6-7 1941 8-0 Motor-vehicles licensed .. .. Number 1933J 195,019 1935J 209,462 1936J 228,247 1941:f 313,087 Total factory employees .. .. (000) 1934 86-0 1935 93-6 1936 102-3 1941 132-9 Index-numbers of — Export prices (1909-13 = 1000) .. Number 1932§ 892 1934§ 1109 1935§ 1102 1940S 1524 Wholesale prices (1926-30 = 1000) „ 1932§ 878 1934§ 909 1935§ 937 1940§ 1195 Retail prices— Food groups (1926-30 = 1000) .. „ 1933§ 732 1934§ 774 1935§ 835 1940S 1076 All groups (1926-30 = 1000) .. „ 1933§ 795 1934§ 808 1935§ 837 1940§ 1035 Wage-rates— Nominal (1926-30 = 1000) .. „ 1933§ 833 1934§ 839 1935§ 858 1940S 1130 Effective (1926-30 = 1000) .. „ 1932§ 1031 , 1934§ 1038 1935§ 1025 1940S 1092 Share prices (1926 = 1000) .. „ 1932§ 703 1934§ 960 1935§ 1026 1940§ 914 • Production year—approximately twelve months ended June. t Does not include factory processing of primary products. f As at end of March § Calendar year.
8.—6.
TABLE No. 20. Index Numbers of Value and Volume of Production and of Goods available for Consumption within New Zealand.
iii—B. 6
XVII
(Base: 1938-39 = 100.) Total Goods available for New Zealand Consumption. Farm. Factory.* New Zealand ; — Production Year. Production. New-Zealand- Imported Total Total other than produced. imported. iota 1 Capital Goods. Value. | Volume. Value. Volume. Value. J Volume. Value. Volume. Value. Volume. Value. Volume. Value. I Volume. 1928-29 .. . . 102 83 79 69 94 80 91 83 82 74 88 80 96 84 1929-3° • • 92 86 84 72 89 83 95 : 89 87 81 92 86 101 91 1930-3 1 • • ■ • 69 84 76 66 72 79 78 80 62 60 71 72 80 79 I 93 I ~3 2 • • • • 61 84 61 56 62 76 63 72 44 45 55 61 64 69 i93 2 -33 • • ■ • 63 96 58 57 62 83 60 73 45 46 54 62 64 71 T 933 - 34 • • ■ • 79 100 61 60 73 87 65 76 47 49 58 64 66 71 J934-35 • • • • 74 95 68 69 72 87 70 83 61 63 66 75 74 80 I 935~3 6 •• •• 90 103 76 76 85 I 94 79 88 70 74 75 82 81 85 1 •• •• no 105 88 90 101 j 99 93 96 89 91 91 94 97 97 *937-38 ■ ■ ■ ■ io 3 i°3 98 96 100 I 100 96 99 102 102 98 100 101 102 *938-39 ■ • • • 100 100 100 100 100 100 100 100 100 100 100 100 100 100 1939-4° •• •• 105 101 110 109 106 104 101 106 82 76 93 94 90 92
8.—6.
Copy of Prospectus of 19-10 War Loan. Dominion of New Zealand. NEW ZEALAND GOVERNMENT WAR LOAN, 1953. Issue of Stock : Repayable Ist October, 1953. Proceeds to be used for equipping and maintaining the armed forces of the Dominion, and for other war purposes. Stock of this issue is non-interest bearing up to the Ist October, 1943. Interest will be paid thereafter at the rate of 2\ per cent, per annum. A first interest payment of £1 ss. per cent, will be made on the Ist April, 1944. Price of Issue £100 per cent. Payable as follows :— On application .. .. .. .. .. .. £30 per cent. On 16th December, 1940 .. .. .. .. £40 per cent. On 25th March, 1941 .. .. .. .. .. £30 per cent. Authorized to be raised in accordance with the provisions of the New Zealand Loans Act, 1932, whereby the interest and principal are a direct charge upon the public revenues of the Dominion. The Minister of Finance has indicated that for the purposes of the Finance Emergency Regulations 1940 (No. 2) he will not regard any person as having subscribed in due proportion to his means unless such person has subscribed to this Loan at least the amount of the income-tax payable by him in respect of income derived during the year ended 31st March, 1939, being the tax normally payable in February, 1940, decreased in the case of individuals by £50 and in the case of companies by £70. For the purposes of computing this minimum subscription, which must be calculated to the nearest multiple of £10, any income that was free of income-tax in the hands of the recipient shall be deemed to have been subject to such taxation. The tax-free income which would be taken into account in this way includes dividends other than those from companies incorporated in New Zealand, interest from tax-free Government Stock and from tax-free company debentures, tax-free income derived from abroad, and also farming income where the land used had an unimproved value of less than £3,000. The Trustee Act, 1908, authorizes trustees to invest in Government securities, and special provisions affecting trustees are contained in Regulation 20 of the Finance Emergency Regulations 1940 (No. 2), the effect of which is that no obligation or limitation imposed on any trustee by virtue of any trust, instrument, or otherwise shall prevent or excuse him from compliance with any direction, notice, or requirement under those Regulations. Any person who prior to the issue of this Prospectus has made a loan free of interest to the Government for the purposes of the War Expenses Account established under Part I of the War Expenses Act, 1939, may apply to convert such loan in whole or in part into an equivalent amount of stock of this issue, in which case (but not otherwise) the amount of such original loan thus converted will be regarded as a contribution to this Loan. Any person who makes or has made a gift to the War Expenses Account may reduce his contribution to this loan by the amount of such gift. The Reserve Bank of New Zealand gives notice that, on behalf of the Minister of Finance, it is authorized to receive applications for the issue of stock in terms of this Prospectus. The proceeds of the issue will be paid into the War Expenses Account established under Part I of the War Expenses Act, 1939. The loan will be repaid at par at the Reserve Bank of New Zealand, Wellington, on the Ist October, 1953, but any stock issued to a person in response to an application made in terms of this Prospectus will be accepted at par at any time before maturity in payment of death duties in respect of that person's estate. The ultimate repayment of the Public Debt of the Dominion is, in the main, provided for under the Repayment of the Public Debt Act, 1925, in pursuance of which New Zealand's debt-reduction resources shall be applied in the purchase and redemption of New Zealand Government securities at or before maturity. For this purpose there is issued annually out of the Consolidated Fund a sum equal to | per cent, of the Debt affected, and to this is added a sum equal to interest at 3J per cent, per annum of the Debt paid off under this scheme. The Repayment of the Public Debt Act applies to the major portion of the Dominion's Debt, certain loans for which adequate sinking-fund provisions are specifically provided, and also the portion of New Zealand's War Debt funded with the Imperial Government, having been excluded from the Debt Repayment Scheme. Securities.- —New Zealand Government Stock transferable by Memorandum of Transfer will be issued on or after the 25th March, 1941, on surrender of fully-paid Allotment Letters. Transfers. —The Register of Stock will be kept at the Reserve Bank of New Zealand, Wellington, where transfers will be registered without payment of any fee. Stock will be transferable in amounts of £5 or multiples thereof. Certificates of Title.—-If Certificates of Title evidencing ownership of the stock are required applications should be made on the prescribed form. No fee is payable for the issue of a Certificate of Title. Interest. —Interest on stock of this issue will not commence until the Ist October, 1943. Thereafter interest will be paid half-yearly on the Ist April and the Ist October : the first payment, being a full six months' interest at the rate of 2J per cent, per annum, will be made on the Ist April, 1944. Interest will be paid free of inland exchange by means of interest warrants, which will be transmitted by post at the risk of the stockholder. The Reserve Bank of New Zealand will accept directions from stockholders for payment of interest to any agent in the Dominion ; existing instructions for the payment of interest in the Dominion will obtain in respect of this Loan. Stamp Duty.-—Transfers of stock of this issue will be exempt from Stamp Duty. Minors. —Any person of the age of ten years or upwards may be registered as'tne holder of stock and may execute transfers thereof.
XVIII
8.—6.
Exchange on Remittances. —Cheques in payment of amounts subscribed to this Loan will be accepted free of inland exchange. Gash Applications.—Cash Applications, on the prescribed form, will be received at the Reserve Bank of New Zealand, Wellington; at the District Treasury Offices at Auckland, Christchurch, or Dunedin ; at any branch of any Bank in the Dominion, or at any Postal Money-order Office in New Zealand. Applications must be for sums of £10 or for a multiple thereof, and must be accompanied by a deposit of £30 per cent, of the nominal amount of stock applied for. Default in payment at its proper date of any instalment will render any amounts previously paid liable to forfeiture and the allotment to cancellation, and the applicant will not be regarded as having contributed to this Loan. Prepayment in full or in part may be made at any time. Conversion Offer. —Persons who prior to the issue of this Prospectus have made loans free of interest to the Government for the purposes of the War Expenses Account established under Part I of the War Expenses Act, 1939, are offered conversion into an equal nomimal amount of stock of this issue. Persons wishing to avail themselves of the offer of conversion in accordance with the terms set forth in this Prospectus must transmit their applications on the prescribed forms, accompanied by relative documents of title, if any, to the Reserve Bank of New Zealand, Wellington. Copies of this Prospectus and forms of cash application may be obtained at the Reserve Bank of New Zealand, Wellington ; at the District Treasury Offices at Auckland, Christchurch, or Dunedin; at any branch of any Bank in the Dominion ; at any Postal Money-order Office in New Zealand ; or from members of any Stock Exchange in the Dominion. Forms of application for the conversion offer are obtainable at the Reserve Bank of New Zealand, Wellington, only. The list of Applications will be opened forthwith and will be closed on the 18th October, 1940. Reserve Bank of New Zealand, Wellington, 26th September, 1940. Copy of Prospectus of National Development Loans. Dominion of New Zealand. NEW ZEALAND GOVERNMENT NATIONAL DEVELOPMENT LOANS. Interest payable 15th January and 15th July. Issue of Stock in either of the following forms :— 3|-per-cent. Stock repayable 15th January, i 3-fer-cent. Stock repayable 15th July, 1945. 1956-1959. First interest payment, 15th July, 1941. J First interest payment, 15th July, 1941. Price of issue : £97 ss. per cent. i Price of issue : £100 per cent. Payable on application. | Payable on application. Authorized to be raised in accordance with the provisions of the New Zealand Loans Act, 1932, whereby the interest and principal are a direct charge upon the public revenues of the Dominion. Trustees may invest in this Loan under the powers of the Trustee Act, 1908, unless expressly forbidden by the instrument (if any) creating the Trust. The Reserve Bank of New Zealand gives notice that, on behalf of the Minister of Finance, it is authorized to receive applications for the issue of stock in terms of this Prospectus. The proceeds of these Loans are to be utilized for general developmental purposes comprising railway construction and improvement, hydro-electric development, land development and afforestation, housing, roads and highways, and public buildings, including telegraph and telephone extension. If not previously redeemed, the 3J per cent. Loan 1956-1959 will be paid off at par at the Reserve Bank of New Zealand on the 15th January, 1959, but the Minister of Finance reserves the right to repay at par at any time on or after the 15th January, 1956, on giving three months' notice in the New Zealand Gazette of his intention to repay. If not previously redeemed, the 3 per cent. Loan 1945 will bo paid off at par at the Reserve Bank of New Zealand on the 15th July, 1945. The ultimate repayment of the Public Debt of the Dominion is, in the main, provided for under the Repayment of the Public Debt Act, 1925, in pursuance of which New Zealand's debt-reduction resources shall be applied in the purchase and redemption of New Zealand Government securities at or before maturity. For this purpose there is issued annually out of the Consolidated Fund a sum equal to J per cent, of the Debt affected, and to this is added a sum equal to 3-|- per cent, per nunum of the Debt paid off under this scheme. The Repayment of the Public Debt Act applies to the major portion of the Dominion's Debt, certain loans for which adequate sinking-fund provisions are specifically provided, and also the portion of New Zealand's War Debt funded with the Imperial Government, having been excluded from the Debt Repayment Scheme. Securities.—New Zealand Government Stock will be issued in either of the following forms as applicants may direct:— (1) Registered Stock transferable by Memorandum of Transfer. (2) Stock Certificate(s) to bearer with coupons annexed. Registered Stock will be convertible into Stock Certificates to bearer, and Stock Certificates will be convertible into Registered Stock, without payment of any fee.
iv-—B. 6.
XIX
8.—6.
Transfers. —The Register of Stock will be kept at the Reserve Bank of New Zealand, Wellington, where transfers will be registered without payment of any fee. Stock will be transferable in amounts of £5 or multiples thereof. Stock Certificates (until the name of some person is inserted therein as the holder) are transferable by delivery. Certificates of Title. —If Certificates of Title evidencing ownership of the stock are required applications should be made on the prescribed form. No fee is payable for the issue of a Certificate of Title. Interest.—-Interest will be paid half-yearly on the 15th January and 15th July. The first interest payment will be calculated from the date on which the application, accompanied by payment in full, is lodged with any Receiving Agency nominated in this Prospectus, and will be made on the half-yearly interest date next following that date. Interest on Registered Stock will be paid free of inland exchange by means of interest warrants, which will be transmitted by post at the risk of the stockholder. The Reserve Bank of New Zealand will accept directions from stockholders for payment of interest to any agent in the Dominion ; existing instructions for the payment of interest in the Dominion will obtain in respect of these Loans. Interest on Stock Certificates to bearer will be paid free of inland exchange by means of coupons annexed to the Certificates. Interest coupons may be presented at the Reserve Bank of New Zealand, Wellington ; at any branch of the Bank of New Zealand in the Dominion ; or at any Postal Moneyorder Office in New Zealand. Stamp Duty.—Transfers of this stock will be exempt from Stamp Duty. Minors. —Any person of the age of ten years or upwards may be registered as the. holder of stock and may execute transfers thereof. Exchange on Remittances. —Cheques in payment of amounts subscribed to this Loan will be accepted free of inland exchange. Applications. —Applications, which must be accompanied by a remittance for the full issue price of the stock applied for, will be received at the Reserve Bank of New Zealand, Wellington; at the District Treasury Offices at Auckland, Christchurch, or Dunedin ; at any branch of any Bank in the Dominion, or at any Postal Money-order Office in New Zealand. Applications must be for sums of £10 or for a multiple thereof. Commission at the rate of ss. per £100 stock will be allowed to bankers and registered sharebrokers on applications bearing their stamp. Copies of this Prospectus and forms of application may be obtained at the Reserve Bank of New Zealand, Wellington; at the District Treasury Offices at Auckland, Christchurch, or Dunedin; at any branch of any Bank in the Dominion ; at any Postal Money-order Office in New Zealand ; or from members of any Stock Exchange in the Dominion. The list of applications will be opened forthwith and may be closed as regards either stock at any time determined by the Minister of Finance. Reserve Bank of New Zealand, Wellington, 3rd January, 1941.
Copy of Prospectus of 1941 Conversion Loans.
Dominion of New Zealand. NEW ZEALAND GOVERNMENT CONVERSION LOANS. Interest payable 15th September and 15th March. Issue of 3|-per-cent. Stock with a Premium (repayable 15th September, 1957-60), and 3-per-cent. Stock at Par (repayable 15th September, 1946-48), in exchange for — 3-per-cent. Stock and Debentures maturing 15 th July, 1941. 3f-per-cent. Stock and Debentures maturing 15th November, 1941. 3J-per-cent. and 4-per-cent. Stock maturing 15th March, 1943. Authorized to be raised in accordance with the provisions of the New Zealand Loans Act, 1932, whereby the interest and principal are a direct charge upon the public revenues of the Dominion. Trustees are authorized by the Trustee Act, 1908, to invest in New Zealand Government stocks unless expressly forbidden by the instrument (if any) creating the Trust. The Reserve Bank of New Zealand gives notice on behalf of the Minister of Finance that New Zealand Government securities will be repaid as indicated hereunder : — Securities to be repaid at Maturity.—3-per-cent. stock and debentures maturing 15th July, 1941. Securities to be repaid before Maturity.—Notice has been given in the New Zealand Gazette of intention to repay the New Zealand Government securities described below on the dates indicated opposite the respective securities :—
XX
' Description of Security. ! I)ate on which Repayment ; will be made. | 3f-per-cent. stock and debentures maturing on 15th November, 1941 15th August, 1941. 3|-per-cent. and 4-per-cent. stock maturing on 15th March, 1943 .. 15th September, 1941.
8.—6.
Interest on Securities being Re/paid. —Interest 011 the securities to be repaid will be calculated up to and paid on the date fixed for repayment, after which interest will cease. Interest payable for any period being less than a full half-year will be calculated on a daily basis and paid by warrants which will be transmitted by post. Offer of Conversion. —The Reserve Bank of New Zealand gives notice that on behalf of the Minister of Finance it is authorized to receive application for the issue of stock in conversion of any or all of the above securities. In accordance with the terms of this Prospectus holders of the securities to be repaid are offered conversion of their securities, as from the date fixed for repayment, into an equal nominal amount (subject to the offer of a premium as set out below) of the following securities namely :— 3J-per-cent. stock maturing 1957-60\Interest payable half-yearly on 15th March and 15th 3-per-cent. stock maturing 1946-48 j September. The first payment of interest on the new securities issued in conversion of the 3-per-cent. stock and debentures maturing 15th July, 1941, and the 3f-per-cent. stock and debentures maturing 15th November, 1941, will be calculated from the dates of conversion as set out hereunder to the 15th September, 1941, and paid on that date : thereafter interest 011 the new conversion securities will be paid half-yearly on the 15th March and 15th September.
Premium on Conversion.—Holders who convert into the 3£-per-cent. loan maturing 1957-60 in terms of this Prospectus will receive a premium of £3 per centum 011 the nominal value of the securities surrendered for conversion. Such premium will be met by the issue of securities in the new loan for amounts of £5 or multiples thereof. Fractional amounts of £5 will be paid in cash 011 the respective conversion dates. Death Duty Stock. —Any person who accepts the offer of conversion into either of the new issues may stipulate in the form of application that the whole or any portion of the stock (being a multiple of £5) to be issued to him will be available for payment of death duties in terms of section 40 of the New Zealand Loans Act, 1932. The attention of persons who hold Death Duty stock in the loans to be repaid is directed to the fact that the condition of availability for payment of death duties will not attach to the securities to be issued in conversion unless the necessary stipulation is made in the form of conversion application. Death Duty stock is not transferable as such from person to person but may be exchanged for ordinary stock which is transferable. Death Duty stock will be issued in the form of stock only. Applications.—Holders accepting the offer of conversion must transmit their applications on the prescribed form to the Reserve Bank of New Zealand, Wellington, or lodge them with the District Treasury Officer at Auckland, Ohristchurch, or Dunedin, or with any branch of any trading bank or at any postal money-order office in the Dominion, for transmission to the Reserve Bank. Applications for conversion may be for the whole or a part of any holding to which this offer applies, but must be for a multiple of £5 and must be accompanied by any relative documents of title such as debentures or certificates of title to stock in cases where such certificates have been issued. In the case of 3-per-cont. debentures maturing 15th July, 1941, the coupons in respect of interest due on that date should be detached before such debentures are surrendered for conversion ; in the case of the 3f-per-cent. debentures maturing 15th November, 1941, the interest coupons for the period subsequent to the 15th May, 1941, should be surrendered intact with the debentures. Assented Stock.—From the date of the closing of the list for conversion applications until the respective closing dates of the Registers of Stock as specified in this Prospectus, holdings in respect of which conversion applications have been received will be regarded as " assented " stock. Securities not Converted.—Any stock or debentures subject to the offer contained in this Prospectus and not converted will be repaid at par on the respective conversion dates. In the case of stock a form of request for redemption should be completed and transmitted to the Reserve Bank of New Zealand, together with relative documents of title (if any). Repayment will be effected by means of a warrant forwarded by post. In the case of 3f-per-cent. debentures maturing 15th November, 1941, a form of request for redemption must be completed and transmitted to the Reserve Bank of New Zealand, together with the relative debentures with interest coupons for the period subsequent to the 15th May, 1941, intact. It is important that the interest coupons for the period mentioned be left attached to the debentures, as interest for the period 15th May, 1941, to 15th August, 1941, will be paid by warrant which will be forwarded direct from the Reserve Bank. Debentures of the 3-per-cent. Loan maturing 15th July, 1941, should be presented to any branch of the Bank of New Zealand in New Zealand. New Securities. —New Zealand Government Stock will be issued in the following forms as applicants jn ay direct— (а) Registered stock transferable by Memorandum of Transfer : (б) Stock certificate(s) to bearer with coupons annexed : (c) Death Duty stock under section 40 of the New Zealand Loans Act, 1932.
XXI
Securities eligible for Conversion. Date ° f Conversion if Offer of Conversion accepted. 3-per-cent. stock and debentures maturing 15th July, 1941 .. .. 15th July, 1941. 3|-per-cent. stock and debentures maturing 15th November, 1941 . . 15th August, 1941. 3|-per-cent. and 4-per-cent. stock maturing 15th March, 1943 .. . . 15th September, 1941.
8.—6.
Registered stock may be converted into stock certificates to bearer, and stock certificates maybe converted into registered stock in terms of the New Zealand Loans Act, 1932. No fee is payable in respect of any such conversion. Limitation on New Issues. —Stock and debentures surrendered for conversion will be replaced by new stock in accordance with this Prospectus and the application submitted, except that the right is reserved to limit allotments in either of the new issues to £15,000,000. Where on account of this limitation an allotment in full cannot be made the applicant will be offered conversion into the other issue. Transfers. —The Register of Stock for both the new issues will be kept at the Reserve Bank of New Zealand, Wellington, where transfers will be registered without payment of any fee. Such stock will be transferable in amounts of £5 or multiples thereof. Stock certificates (until the name of some person is inserted therein as the holder) are transferable by delivery. Certificates of Title. —If certificates of title evidencing ownership of the stock are required applications should be made on the prescribed form. No fee is payable for the issue of a certificate of title. Repayment. —If not previously redeemed stock of the 3|-per-cent. Loan 1957-60 will be repaid at par at the Reserve Bank of New Zealand on the 15th September, 1960, and stock of the 3-per-cent. Loan 1946-48 will be repaid at par at the Reserve Bank of New Zealand on the 15th September, 1948, but the Minister of Finance reserves the right to repay at par the Loan at any time on or after the 15th September, 1957, and the 3-per-cent. Loan at any time on or after the 15th September, 1946, on giving at least three months' notice in the New Zealand Gazette of his intention to repay. Interest on New Securities. —Interest on registered stock of the new issues will be paid free of inland exchange by means of interest warrants which will be transmitted by post at the risk of the stockholder. Existing instructions for the payment of interest in the Dominion will apply in respect of the new issues. Subject to the provisions of the next succeeding paragraph, interest on stock certificates to bearer will be paid free of inland exchange by means of coupons annexed to the certificates. Interest coupons may be presented at the Reserve Bank of New Zealand, Wellington, at any branch of the Bank of New Zealand, or at any postal money-order office in New Zealand. Interest payable on Stock Certificates for any period being less than a full half-year will be calculated on a daily basis and paid by warrant forwarded direct from the Reserve Bank, Wellington. The first interest coupon annexed to any stock certificate will cover the first full half-year's interest. Closing of Registers. —The Registers will be closed for all transactions relating to the 3-per-cent. stock maturing 15th July, 1941, on the evening of the 14th June, 1941, the Registers relating to the 3§-per-cent. stock maturing 15th November, 1941, on the evening of the 19th July, 1941, and the Registers relating to the 3|-per-cent. and the 4-per-cent. stock maturing 15th March, 1943, on the evening of the 16th August, 1941. The final payment of interest and the repayment of principal will be made to the persons registered as owners of the respective stocks on the appropriate closing-dates specified, and conversion will be effected only in the names of the registered holders of the stock on those dates. Commission. —Commission at the rate of five shillings per £100 nominal value of convertible securities will be allowed to bankers and registered sharebrokers on allotments made in respect of conversion acceptances bearing their stamp. Copies of this Prospectus and forms of application may be obtained at the Reserve Bank of New Zealand, Wellington ; at the District Treasury Offices at Auckland, Christchurch, or Dunedin ; at any branch of any Trading Bank in New Zealand; or at any Postal Money-order Office in the Dominion. The lists for the loans will be opened forthwith, and will be closed on the evening of the 14th June, 1941. The Reserve Bank, however, is authorized to accept applications after the closing date specified in any case where, in the opinion of the Bank, application prior to such date was impracticable. Reserve Bank of New Zealand, Wellington, 15th May, 1941.
By Authority: E. V. Paul, Government Printer, Wellington. —1941.
XXII
Explanatory Note on Omission of 8.-7 and 8.-7 a (Appropriations chargeable on Consolidated and Public Works Funds and other Accounts). The appropriations chargeable on the Consolidated Fund and on the Public Works Fund and other accounts have prior to the year 1939-40 been published in the Appendices under the description 8.-7 and 8.-7 a respectively. The appropriations are compiled from the estimates of expenditure chargeable on the respective funds or accounts which have been submitted to and passed by the House. The estimates consist of the main estimates and the supplementary estimates. For reasons of economy the appropriations have not been printed separately. If it is desired to ascertain the amount appropriated for any particular item of the estimates, there must be added to the amount shown on the main estimates the amount, if any, for the same item shown on the supplementary estimates. The total amount appropriated for each vote on the estimates as opposed to the separate items of the vote {e.g., Vote " Legislative ") is shown in the summary published in the supplementary estimates. For the separate items, however, both main and supplementary estimates must be consulted. The estimates for the Consolidated Fund and for the Public Works Fund are shown separately. The same relative order is maintained in the supplementary estimates as in the main estimates.
Permanent link to this item
https://paperspast.natlib.govt.nz/parliamentary/AJHR1941-I.2.1.3.7/1
Bibliographic details
FINANCIAL STATEMENT. (In Committee of Supply, 16th July, 1941.) BY THE HON. WALTER NASH, MINISTER OF FINANCE., Appendix to the Journals of the House of Representatives, 1941 Session I, B-06
Word Count
20,278FINANCIAL STATEMENT. (In Committee of Supply, 16th July, 1941.) BY THE HON. WALTER NASH, MINISTER OF FINANCE. Appendix to the Journals of the House of Representatives, 1941 Session I, B-06
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